Q4. The following equation represents the demand for coffee: Qc=603Pc2Ps+1, where Pc is the price of coffee, P5 is the price of sugar, and I is the Income. Assume that Income equals 200 and the price of sugar is 1 0. a) Derive the equations for the demand and the inverse demand curves. Draw this demand labeling as many points as you can. Indicate the regions where the demand is elastic, unit elastic, and inelastic. b) Assume the price of coffee is 50. Compute the own price elasticity of demand at the current price. Is the demand elastic, unit elastic, or inelastic at this point? What would happen to the revenue of the rm if the price of coffee went down? Why? (Hint: Revenue = P0) c) Assume the price of coffee is 50. Compute the cross price elasticity of demand. Are coffee and sugar complements or substitutes? Why? What would happen to the demand for coffee if there is a 9% decrease in the price of sugar? Be specic. d) Assume the price of coffee is 50. Compute the income elasticity of demand. Is coffee a normal or inferior good? Why? How much would income have to change in order to increase the consumption of coffee by 40%