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12) The demand and supply for a good are respectively QD = 24 - 2P + I and QS = 4P - 8 with QD

12) The demand and supply for a good are respectively QD = 24 - 2P + I and QS = 4P - 8 with QD denoting the quantity demanded, QS the quantity supplied, and P the price for the good. Suppose the consumers' income is I = 4.

a) Determine the price-elasticity of demand if P = 7.

b) Determine the income-elasticity of demand if P = 6.

c) Determine the price-elasticity of supply if P = 4.

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