Question 2 (15) The demand for widgets (Qx) is given by the following equation: Qx = 15 - 5Px + 0.8 I + 2 Py - 0.6Pw+ 1.2 A where Qx = number of units of widgets sold per week Px = the price of widgets = 12 PY = the price of woozles = 18 Pw = the price of whatsits = 5 I = per capita income = 250 A = Advertising on widgets = 10 (a) Calculate the elasticity of demand for widgets with respect to its own price, the price of woozles, the price of whatsits, income, and advertising. (7.5) (b) Calculate consumer surplus at the revenue-maximizing price of widgets. (2.5) (c) If the cost per widget is 4 and the widget manufacturer behaves as a monopolist, how many widgets will it sell and at what price