Question 3: Suppose for a country all goods are classified into three groups (1) Exportable (E) goods (2) Importable(Im) goods and (3) Non-tradable (N). We know that their respective shares in total consumption are SE=0.3,SI=0.45,SN=0.25. 1 a. If the income elasticity of demand for Exportable goods is 1.2 and for Importable goods is 0.50, what is the income elasticity of demand for Non-tradable? b. If you know that the compensated own-price elasticity of demand for Exportable goods is 1.0, for Importablegoods is 0.6, and the compensated own-price elasticity of demand for Non-tradable is 1.2. What are the uncompensated own-price elasticity of demand for these three goods? c. If you know from part b that compensated own-price elasticity of demand for Exportable goods is 1.0 and you also know that the compensated cross-price elasticity for Exportable goods with respect to the prices of Importable goods is 0.45, what is the compensated cross price elasticity of demand for Exportable goods with respect to the price of Non-tradable? d. Using the information from part c, what is the compensated cross price elasticity of demand for Importable goods with respect to the price of Exportable goods? What is the compensated cross price elasticity of demand for Non-tradable with respect to the price of Exportable goods? e. What is the marginal propensity to consume for Exportable goods, Importable goods, and Non-tradable? f. If you know that the own-price elasticity of demand of Importablegoods is 0.6 (given in part b) and the compensated cross-price elasticity of Importable goods with respect to Exportable goods is found by your answer to first part of part d, what is the compensated cross price elasticity of demand for Importable goods with respect to the price of Nontradable? g. What is the uncompensated cross price elasticity of demand for Exportable goods with respect to the price of Importablegoods? What is the uncompensated cross price elasticity of demand for Non-tradable with respect to Exportable goods