There are two questions to this problem set please answer both:

1.)

O c=-aBp-B-1 Suppose the market has the following demand function.: q = ap P. Derive the price elasticity of demand. Oc=-B O c=-aBq:B-1 O c=-aBYou are a firm and have been collecting production data for several years. You have data on inputs- specifically, capital (K) and labor (L)-and their corresponding output levels. You want to estimate a simple Cobb-Douglass production function. In a few sentences, describe how you go about doing this. At a minimum, your answer should include the statistical method you plan to use and any relevant equations or transformations of variables needed to take place prior to estimation T T T Arial 3 (12pt)