The demand function for California spinach is QD= a bP + cY (1) and the supply function is QS= d + eP gF (2) where Q is quantity, P is market price, Y is aggregate income, and F is the price of fertilizer. The intercept and slope parameters a, b, c, d, e and g are positive numbers. Now assume that a= 35, b= 3, c =0.25, d= 15, e= 5 and g= 2. The income is Y= 100 and the price of fertilizer is F= 7.5

Calculate the elasticity of demand at the equilibrium. Interpret your result in words. Is demand for spinach elastic or inelastic? Calculate the income elasticity of demand at the equilibrium 5. By how much would the quantity of spinach demanded increase if income were to rise by 3%?