ESTION 1 a's franchises have enjoyed growth in the Mid-Atlantic region of the US. The Director of Franchising estimated demand for the number of cups of flavored ice served ochise per week. The demand function follows: QD = 200 - 3,000P + 1201 + 65T -250Ac + 400A Where: P is the average price for cups of flavored ice measured in dollars I is the average disposable income for customers measured in thousands of dollars T is the average daily temperature measured in degrees Ac is the average advertising expense of competitors measured in thousands of dollars A is the average advertising expense of Rita's franchises measured in thousands of dollars Assume expected values for the independent variables are: P = $1.65, I = $10,000, T- 68 degrees, Ac - $15,000, and A = $12,000 a. Derive the demand curve for cups of flavored ice using the expected values for the independent variables. b. Estimate demand for cups of flavored ice using the expected values for the independent variables. C. Calculate the point price elasticity of demand at P = $1.65. Based on your calculation, how would you characterize demand for flavored ice? d. Determine the arc income elasticity of demand at I1 = $10,000 and 12 = $11,000. Based on your calculation, what type of good is flavored ice? Equations: Point elasticity: Ex = dQ/dx * x/