If your company produced Pallets, and you are provided analysis such that the demand for Pallets is estimated to be

Q_a = 1000 - 0.7p_a + 12p_X- 21p_Z + 0.1Y

Note that p_a = 80, p_X = 50, p_Z = 150, and Y = 20,000; answer the following:

a.What is the price elasticity of demand for Pallets?This requires a calculation

b.What is the cross-price elasticity with respect to commodities A and Z? In this example, the price of Good Z riseswhat happens to the quantity demanded Good A (5 Points).Give an example of what commodity Z might be and what is the meaning of the cross-price elasticity in this case.

c.What is income elasticity?