PROBLEM AND REQUIREMENT CROSS-PRICE ELASTICITY 6) The demand for good X is estimated to be Q x d = 10, 000 - 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income, and AX is the amount of advertising on X. Suppose the present price of good X is P50, PY = P100, M = P25, 000, and AX = 1,000 units. Based on this information, the cross-price elasticity between goods X and Y is and are they substitute or complement? PROBLEM AND REQUIREMENT INCOME ELASTICITY 7) The demand for good X is estimated to be Q x d = 10, 000 - 4PX + SPY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income, and AX is the amount of advertising on X. Suppose the present price of good X is P50, PY = P100, M = P25, 000, and AX = 1,000 units. Based on this information, the income elasticity of good X is, is it normal or inferior good? PROBLEM AND REQUIREMENT INVERSE DEMAND FUNCTION: OWN PRICE ELASTICITY OF DEMAND 8) Suppose the equilibrium price in the market is P100 and the marginal revenue associated with the linear (inverse) demand function is P50. Then we know that the own price elasticity of demand is: PROBLEM AND REQUIREMENT WORKERS CHOICES 9) A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of P15 per hour. Suppose the worker is always willing to give up P11 of income for each hour of leisure. What is the workers opportunity set in a given 24 -hour period and how many hours per day will she choose to work