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Please help me solve the below questions. Thank you.

Eco 302 Intermediate Microeconomics Homework # 3 (30 points) 1. (10 points) For the following pairs of goods, would you expect the cross price elasticity of demand to be positive, negative or zero? Briey explain your answers. a. Red umbrellas and black umbrellas b. Coca cola and Pepsi c. Grape jelly and peanut butter d. Computers and software e. Socks and alarm clocks 2. (9 points) The demand for good X is given by Q5 ... 1,245 - 0.51%: + 0.25133, 0.51\"Z + 0.1! Good X sells for $6,000 ( Px = $6,000 ). Research shows that the prices of the related goods are given by P3,: $5,900 and P2 = $90 , while the average income of individuals consuming this product is I = $55,000. a. Calculate the price elasticity of demand for good X at the current price of X. b. Calculate the cross price elasticity of demand for good X with respect to price of good Y. c. Calculate the income elasticity of demand for good X. 3. (11 points) The Theater and Dance Department at a university is considering changing the way they price tickets for their productions. Suppose you were hired as an economic consultant and were asked to estimate the demand for tickets. As the consultant you have classified people who go to the productions of theatre and dance department into two groups and have come up with two demand functions. The demand equation for the general public (Q3) and students (Q5) are given below: . Q, = 500 5P Q5 = 200 4P a. (4 points) Graph the two demand equations on one graph. If the current price of tickets is $35, identify the quantity demanded by each group. b. (4 points) Find the price elasticity of demand for each group at the current price and quantity. 2 c. (3 points) Is the theater department maximizing the revenue it collects from ticket sales by charging $35 for each ticket? Explain. 4. (10 points) Suppose you are the marketing manager of an amusement park and you are told to come up with strategies that would increase the prots ofthe park. You decided to modify the entrance fees charged in an effort to raise prots. For this you have estimated the price elasticity of demand for the amusement park and found that to be 0.8. a. Would you lower or raise your entrance fees? How would your revenue change as a result? Explain. b. What is the impact of your chosen strategy in part (a) on your prot? Explain