Question: The demand for Widgets (Qx) is given by Qx = 100 - 1Pz + .5Py - 0.01I, where Px is the price of widgets, Py

The demand for Widgets (Qx) is given by Qx = 100 - 1Pz + .5Py - 0.01I, where Px is the price of widgets, Py is the price of woozles, and I is the income. a. Calculate the price elasticity demand for widgets when Px is between 2 and 3, Py = 1, and I = 500. Is the demand for widgets elastic, unit-elastic, or inelastic? b. Calculate the cross-price elasticity demand for widgets when Py is between 1 and 2, Px = 2, and I = 500. Are widgets and woozles substitutes or complement goods? c. Calculate the income elasticity demand for widgets when I is between 500 and 1,000, Px = 2, and Py = 1. Are widgets normal or inferior goods?

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