Hello, I have an ag economics question. At the moment, I am currently having trouble starting the problem and let alone finishing it. I would love your input on the problem. I have provided an image of the question. I have also provided notes for you to look and get a better understanding ofhow the homework has to be done using the interpretative method and the functional formula not any other way sorry.Please do not use themid-point method. I have also provided notes on two examples of the questions so it could help you answer this one.

PRICE OF RELATED GOODS CROSS-PRICE) ELASTICITY (Ex, y)1. Measures Demand Responsiveness when the Price of a Related Good Changes A. Recall: The Consumer is Choosing a Quantity in Order to Maximize Their Utility 1. What Happens to that Choice (Q) When the Price of a Related Good. Changes (Py)? 2. Which Direction does Demand Move? 3. How Much does Demand Move? B. Direction Theory Based 1. Are the Goods Complementary to Each Other? 3. Does the Consumer Use Both Goods Together? in. Price and Demand Changes will he in Opposite Directions 2. Are the Goods Substitutes for Each Other? a. Does the Consumer Use One or the Other Good'.J b. Price and Demand Changes will be in the Same Direction 3. Is there not a relationship between these goods? 3. The Price of One Good has No Effect on the Demand for Another Good? b. Price Changes will have No Effect on Demand C. Magnitude Empirical Data Based 1. Based on Actual Consumer Behavior 2. What is the Percentage Change in Demand? I. Calculating the Elasticity - Formula Percentage Change in Demand for X Percentage Change in Price of Related Goods (Y) 25 0 1. Interpretative Formula 2. Percentage Change in Demand for Good X per Percentage Change in the Price of a Related Good (Y) 3. Unrestricted in Sign 4. Magnitude (See Section I.C.) q1x - q2x B. & XV = q1x + q2x Ply - P2y 25 0 Ply + P2y 1. Functional Formula 2. Use this Formula when Calculating Elasticities II. InterpretationAs the price of gasoline has increased from $39990 to $5.6990 per gallon, the demand for electric bicycles has risen from 659 to 1524 bikes. 1. Calculate the Appropriate Elasticity: 2.2605 2. Interpret the Elasticity form (1.): For every one percent change in the price of gasoline, the demand for electric bikes will change by 2.2605% in the same direction as the price change, CP 3. Classify gasoline and electric bikes. Substitutes As the price of peanut butter has risen by 10%, the demand for chocolate has decreased from 30 ounces to 26 ounces. 1. Calculate the Appropriate Elasticity: -2.0408 2. Interpret the Elasticity form (1.): For every one percent change in the price of peanut butter, the demand for chocolate will change by 2.0408% in the opposite direction of the price change, CP 3. Classify peanut butter and chocolate. Complements Organic produce prices increase from $4.7999 to $63956 per pound, subsequently, the demand for traditionally farmed produce increases from 487,525 to 7,032,981 pounds. 1. Calculate the elasticity. 2. Interpret the elasticity. 3. How would you classify organic and traditionally farmed produce? A. For Every One Percent Change in the Price of a Related Good (Y), Demand for Good (X) will Change by _ Percent in the Opposite/Same Direction of the Price Change, ceteris paribus. B. Key Components of the Interpretation 1. Price of Related Goods 2. Demand 3. Opposite/Same 1v. Classification of the Good in Question A. Ex,y ) 0, The Goods are Classified as SUBSTITUTES B. Ex, Y 1 0, The Goods are Classified as COMPLEMENTS C. Ex,y = 0, No Relationship Between the Py and the DxAll final answers must have four decimal places.6:28 Done 13 of 26 A PRG P $5 = P, + P $ 3 = P2 9 # 1 8 = 91 -> 92: 16 An # 2 B Exy = 9 , 4 - 924 9 14 + 9 24 N/IV Pix - Pzx Pix + Pzx For every 1 % A PX , Demand for y will change by - 1.33 % in the ( opp ) or same direction as the P x A , CP Exly > 0 Substitutes Ex ,y L 8 ( complements 8 - 16 24 - 1.33 CN / - A 8+16 DI- WI- 5 - 3 OR / N 5+ 3