Duke's company has more than 1000 locations. In 2021, the company hired a team of economists to estimate the daily demand for it's own brand along with other variables - the economist estimated the demand functions as follows:

Q = 100 - 3 P + 4 Py - 0.71 M + 0.95 Ax

Suppose Duke Shoes sell for $55 a pair, Niki Shoes sells for $45, the company utilizes 50 units of advertising and average consumer income is $45,000. Using this information, answer the following questions:

1. Calculate and interpret the own - price, cross-price and income elasticities

2. For raising revenues, should this firm raise or lower the price? Why? Explain?

3. Is Niki Shoes a substitute or complementary good? Why? Explain using the calculated cross-price elasticities.

4. Is Duke Shoes a normal or an inferior good? Why? Explain

5. What is the impact of advertising on the sale of Duke shoes? Explain