1. LYFEN is considering adding another fruit-based product for which the demand has been estimated by the function Q = 7500 – 500PF +7I + 100PB, where PF is the price of LYFEN's proposed product, I is per capita income, and PB is the price of a similar product from one of the competing companies. Assume the initial values of PF, I, and PB are 60, ¥9,500, and 40. Given this information, answer the following based on your calculations of appropriate elasticities.
   1. What effect would a price increase have on the total revenues earned from the proposed product? (10%)
   2. What would you expect to occur to sales given an increase in personal income? (10%)
   3. What is the potential impact if the competing seller raises its price? (10%)