Question: Suppose the demand function for the Honda Accord is Q^D = 430 - 10P_A + 10P_C - 10P_G + 20Y where P_A and P_C are

Suppose the demand function for the Honda Accord is Q^D = 430 - 10P_A + 10P_C - 10P_G + 20Y where P_A and P_C are the prices (in thousands of dollars) of the Honda Accord and the Toyota Camry, respectively, P_G is the price of gasoline (per gallon), and Y is consumer income (in thousands of dollars). Assume that at the price of an Accord is $ 20,000, the price of a Camry is S 25,000, the price of gasoline is $ 3.00 per gallon, and average consumer income is $ 40,000 (Y = 40) A. What is the price elasticity of demand for the Honda Accord? Is the demand elastic or inelastic? Explain. B. What is the income elasticity of demand for the Honda Accord? Is the Honda Accord a normal or an inferior good? Explain

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