1. Given the demand function:
where P = the price of the good, PA = the price of an alternative good and Y = income
If P=4, PA=8 and Y=60 find:
a. the price elasticity of demand
b. the cross-price elasticity of demand
c. the income elasticity of demand
If income increases by 5%, calculate the corresponding change in the quantity demanded.
Is the good inferior or superior?
thank you all for your help.