Question: The demand function for shiny rocks is empirically estimated via multiple regression to be: Q = 152,000 - 25,000*(Own Price) + 1.45*(Income) + 14,000*(Related Good

The demand function for shiny rocks is empirically estimated via multiple regression to be:

Q = 152,000 - 25,000*(Own Price) + 1.45*(Income) + 14,000*(Related Good Price)

a) What is the estimated quantity demanded if Own Price is $4.50, Income is $60,000, and the Related Good Price is $4?

b) Calculate the cross-price elasticity of demand for shiny rocks.

c) Is the Related Good a complement or substitute product? How do you know?

d) Is it a Giffen good? How do you know?

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