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explanations, definitions , formulas used, graphs where applicable Q2. The demand function for good 1 is given by 1 Where p1 is the price of

explanations, definitions , formulas used, graphs where applicable

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Q2. The demand function for good 1 is given by 1 Where p1 is the price of good 1, p2 is the price of good 2, and y is income. i. Are goods 1 and 2 complements or substitutes? ii. What is the income elasticity of demand for good 1? C18. Edith is walking through the countryside and she happens upon a Coke machine (the first one she's seen for miles). She's quite thirsty and she realises that a good characterisation of her demand for Coke would be the equation P = 6 2Q. At what price for a can will she buy exactly one can of Coke? i. At a price of $4.50 per can, Edith will buy exactly one can ii. At a price of $3.50 per can, Edith will buy exactly one can iii. At a price of $2.50 per can, Edith will buy exactly one can iv. At a price of $1.50 per can, Edith will buy exactly one can

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