An economist estimates the following demand function for chicken.

ln(Q)=-6.00-1.2 ln(Ppoultry)-0.35ln(Pvegetables)+0.45ln(Plamb)+1.1 ln(I)

where Q is per capita consumption of chicken and I is per capita income.

1. What is the own-price elasticity of demand for chicken? (1 point)

2. What is the cross-price elasticity with respect to vegetables? (1 point)

3. What is the cross price elasticity with respect to lamb? (1 point)

4. Is demand for chicken price elastic or inelastic? (1 point)

5. If the price of chicken increased, would expenditures on chicken increase or decline? (2 points)

6. Are vegetables a gross substitute or complement for poultry? (2 point)

7. Is lamb a gross substitute or complement for poultry? (2 point)

8. Is chicken a normal, luxury or inferior good? (2 point)

9. The economist also found that the average consumer spends about two percent of income on poultry and about one percent each on vegetables and lamb. What is the compensated own-price elasticity of demand for chicken? (4 points)

10. What is the compensated cross-price elasticity of chicken with respect to lamb and with respect to vegetables? (4 points)

11. What causes the differences between the compensated and uncompensated own and cross price elasticities to be larger for some goods than for others? (2 points)