Question: The demand function for bicycles in Holland has been estimated to be Q=2,000+15Y-5.5P where Y is income, Q is the quantity demanded in units, and

The demand function for bicycles in Holland has been estimated to be Q=2,000+15Y-5.5P where Y is income, Q is the quantity demanded in units, and P is the price per unit. When P=150 euros and Y=15000 euros, determine the following:

a. Price elasticity of demand

b. Income elasticity of demand.

Please explain.

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