PLEASE ANSWER THE WHOLE OF QUESTION C

c. Suppose a researcher studies the relationship between quantity demanded of Honda Fit cars and the level of income of consumers in Botswana and estimates the following equation: Page 7 of 8 Qd=25I0.5I2+100 Where ' Q ' is the quantity demanded in thousand units, and ' I ' is the level of monthly income in Thousands of Pula; i. What is the Income Elasticity of Demand when Income increases from P10 (Thousand) to P15 (Thousand). (8 Marks: 2 marks for stating the formula for Income Elasticity of Demand and 4 marks for correctly calculating the Income Elasticity of Demand and 2 marks for interpreting the answer) ii. Above what level of income does Honda Fit become an inferior good? (6 Marks) iii. Suppose that you are the production manager of the company that manufactures Honda Fit cars in Botswana, what action will you take when consumers level of income approaches the cut-off point estimated in ' b ' above? c. Suppose a researcher studies the relationship between quantity demanded of Honda Fit cars and the level of income of consumers in Botswana and estimates the following equation: Page 7 of 8 Qd=25I0.5I2+100 Where ' Q ' is the quantity demanded in thousand units, and ' I ' is the level of monthly income in Thousands of Pula; i. What is the Income Elasticity of Demand when Income increases from P10 (Thousand) to P15 (Thousand). (8 Marks: 2 marks for stating the formula for Income Elasticity of Demand and 4 marks for correctly calculating the Income Elasticity of Demand and 2 marks for interpreting the answer) ii. Above what level of income does Honda Fit become an inferior good? (6 Marks) iii. Suppose that you are the production manager of the company that manufactures Honda Fit cars in Botswana, what action will you take when consumers level of income approaches the cut-off point estimated in ' b ' above