The Clark Winery estimates that its demand function is: Q = 400 - 3P + 4I + 0.6A, where Q is the quantity demanded per month, P is the price, I is household disposable income (in thousands of dollars) and A is the winery's advertising expenditures (in thousands of dollars per month).

A)Household disposable income during the first few months of the pandemic grew by the equivalent of $5000 per year. What effect would you expect this to have had on the winery's sales?

B) If the Clark Winery wanted to raise its price enough to offset the effect of the increase in household income, how much would the price have had to increase?

C) If Clark Winery increased its price by this amount, would it have increased or decreased the price elasticity of demand?