1. Suppose the own price elasticity of demand for good X is 4, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 4. Determine how much the consumption of this good will change if:

Enter your responses as percentages. If you are entering a negative number, put () sign.

a. The price of good X decreases by 4 percent.

b. The price of good Y increases by 9 percent.

c. Advertising decreases by 2 percent. d. Income increases by 3 percent.

2. Suppose demand is given by Q_x^d = 50 4P_x + 6P_y + A_x, where P_x = $10, P_y = $2, and A_x = $50. What is the own price elasticity of demand for good x?