) Suppose that the monthly demand for housing in Bungoma town is: = , where is the quantity demanded and P is the price of the house. Use this function to answer the following questions: i) Using the mid-point formula for elasticity, suppose that the initial price is KES. 4000, calculate the price elasticity of demand between a price of KES.5000 and KES.4000. Provide an intuitive explanation of your answer (3 Marks) ii) Suppose that the prevailing price is KES.4000, would you recommend an increase in the price to KES.5000, why or why not? Explain using the concept of elasticity. (3 Marks) b) Suppose that when an average customer's income increases from KES. 18,000 to KES. 22,000 per year, annual housing purchases increase from 5,500 units to 6,700 units. Calculate the income elasticity of demand. Is housing a normal good? Explain your