Question: Suppose you have the following general demand function for good x: Qd = 200,000 - 500P +1.50 M -240Pr And the price of good X

Suppose you have the following general demand function for good x: Qd = 200,000 - 500P +1.50 M -240Pr And the price of good X , P= 200 M = 60,000 and Pr = 100 a. Calculate the own price elasticity of demand b. Calculate the income elasticity of demand c. Suppose incomes in this market are forecasted to drop by 5%. Calculate the percentage change in Q due to this anticipated drop in income. d. Find the percentage change in price required to offset this anticipated drop in demand (due to the change in income)

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