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Need help with part AB and C 4. ABInBev supply curve for light beer is given by: Q =2.5P - PRB where PRB is the

Need help with part AB and C

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4. ABInBev supply curve for light beer is given by: Q =2.5P - PRB where PRB is the price of regular beer = $12 per 12-pack and P is the price of light beer = $10 per 12 pack. a. Calculate the price elasticity of supply for light beer. Is the supply of light beer elastic, inelastic or unit elastic? b. Calculate the cross elasticity of supply for light beer. Are light beers and regular beers substitutes or complements in production for ABInBev? c. If the price of regular beer were to increase by 10% what would you reasonably expect to happen in the market for light beer? Draw the market diagram for light beer that displays the changes you describe. Hint: this is asking for you to recall your knowledge of markets from your 101 and 102 days

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