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1) Consider this demand function: Qd = 30 – 1.5p + 0.2Y a. What are the...

1) Consider this demand function: Qd = 30 – 1.5p + 0.2Y a. What are the own price and income elasticities of demand when p =10 and Y = 4? Write out both the formulas, and the calculations, please.



b. Let’s assume that income increase by a factor of 2. What are the own price and income elasticities now?

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