Consider this model h = 30 + 1w + B2Y + B3X+u where we are interested to regress hours of work (h) on hourly wage (w), non-labour income (Y) and some other personal characteristics (X). u is the error term. a. Derive the income elasticity, compensated and uncompensated wage elasticities using the estimated coefficients in this regression. b. What should be the sign of 1 and 2 coefficients? c. Briefly, explain some of the limitations that exist in empirical studies when estimating such regression.