Suppose the demand function for good A is given as:, where QA is quantity demanded of the good A; PA is price of the good A; Pr is price of related good and M is income of the consumer. Assume further that PA = 10; Pr = 15 and M=100, then:

A. Compute the price elasticity of demand for good A with respect to the price of good A at the current situation? Interpret the nature of the price elasticity of demand.

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B. What is the cross-price elasticity of the demand for good A with respect to the price of related good at the current situation? What is the relationship between the two goods?

C. What is the income elasticity of demand for good A at the current situation and the nature of the good?

D. If income of the consumer changes by 20% by how much do you think demand for good A would change?