Question: The demand function for your brand X shirts is estimated as Qd x = 1,000 - 5 Px - 10 Py + 9 PZ+ 0

The demand function for your brand X shirts is estimated as Qd x = 1,000 - 5 Px - 10 Py + 9 PZ+ 0 .001 I The price of X is $ 10, Y is $ 4, Z is $ 10 and incomes are $ 20,000. 1) What are your sales? ______________ 2) What is the elasticity of demand for X? _______________ 3) What is the cross elasticity between X and Z? ______________ 4) Are X and Z substitutes or complements? ______________ 5) What is the income elasticity for X? ______________ 6) If incomes increased by $ 5,000, what would be the increase in sales of X? ______________

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