QUESTION ONE The demand function for a good Z is given by: Qz=100 - 2.5 P2 - 0.65P w + 3.0P x+ 0.80Y Where Qz = Quantity demand of good 2 P2 = Price of good 2 Pw and P x Prices of related good W and X Y: income Given P x = sh. 1'15, P z = shs.100, P w = sh 300 Y = shs 1,000 Required: I. Compute cross price elasticities of demand and interpret your results (6 marks) 11. How are goods W and X related to z {2 marks) Ill. Compute income elasticity of demand. From the income elasticity of demand is good Z a luxury good or a necessity good? Explain (6 marks)