1. The price elasticity of hamburgers has been estimated at -1.20 for a wide range of prices. If prices increase by 15%, what would be the impact on the quantity of hamburgers sold.

2. The market demand for good X has been estimated as: Qx = 880 - 3 Px - 0.03 I - 2.5 Py + 7.5 Pz where Px is the price of good X, I is the per-capita income, Py is the price of good Y and Pz is the price of good Z. Suppose that Px = $ 60, I = $ 20,000, Py = $ 80 and Pz = $ 70 .

a. Calculate the price elasticity of demand b. Calculate the income elasticity and indicate what type of good is good X c. Calculate the cross elasticity with respect to good Y and indicate what will happen if Py increases by 5% d. Calculate the cross elasticity with respect to good Z, indicate what is the relationship between goods X and Z.

3. The price elasticity of soft drinks has been estimated at -1.40 for a wide range of prices. If the prices of soft drinks increase by 12%, what would be the impact on the quantity of soft drinks sold.