4. (30) DINKS are households with 'double income, no kids' and such households are becoming more common in your neighborhood. To capitalize on this growing influence, you have decided to open a gourmet take-out food store. You know that DINK households have a price elasticity of demand for your food which is(- 0.5), an income elasticity for your food of 2, and a cross price elasticity of demand with sparkling water of (-0.4). They also have a price elasticity of demand for premium gasoline of (-0.25). Evaluate each of the following separate events. Be specific in your explanations with a mathematical response. a. Your business partner suggests that decreasing prices by 5% will help you increase total revenue. Is he right? How much(percentage) and in which direction will quantity change? What will happen to total revenue? Briefly explain your response. 5 - ED = 06 4QD % A Income ED= 010 AQ Dolo A price jhot My buishers parther iscorrect That decreasing price f 2 because it is inelastic demand. for gasoline ( springily waters food, to b. The sparkling water businesses in town raise the price of water by 20%. Will this impact your business? How? Again note the percentage change. What is the relationship between sparkling water and your food? This will not i'mbact my buisness , becars 2. lotis The sparkling water is thelastre. The tealish between sparkly water and food is their isela C. A recession causes a drop in DINK household income by 10%. How will this affect your business? Again, be specific. In relation to income, what type of good is gourmet food? ED- %AQD %A Income This will affect my food because it's eld but for demand for food, sparking water JDalike,. be affect , because , to ibelastle d. A local policymaker is worried about premium gasoline consumption and wants to cut it by 10 percent. If she has the ability to change premium gas prices, by how much and in which direction should she change premium gas prices in order to achieve this goal