QUESTION 17

1. The demand for Greyhound Bus tickets () is given as follows:
2. Q_Bus= 500 - 3*P_Bus+ 15*P_Gas- 5*Income
3. where P_Busis the price of a Greyhound Bus ticket (in $),P_Gasis the price of gasoline in $ per gallon, and "Income"is consumers' yearly income (in thousands).
4. You are given the following information:

• The current price of a bus ticket is $10.
• The current price of of a gallon of gas is $2/gallon
• Average income is 20 thousand dollars per year.(Hint:use 20not 20,000if/when needed)

1. Answer the following questions. Insert one value, phrase, or equation in each blank.
2. What is the equation of demand in terms of only the price of bus tickets and the quantity of bus tickets? Enter an equation.
3. What is the cross-price elasticity of bus tickets and gasoline? Enter one value.