The estimated demand for DVD players (DVDs) in a particular city is QDVD =1361.8PDVD 1.5PV +30PM +14.2I

where QDV D = quantity of DVDs players purchased per year, PDV D = price of a DVD player (in dollars), PV = price of a DVD disc (in dollars), PM = price of a movie ticket (in dollars), and I = income (in thousands of dollars). The average values of these variables when the demand function was estimated were: QDVD =347.5,PDVD =200,PV =3,PM =5,and I =30.

(a) Is going to the movies a substitute or complement for DVD players? Explain your answer.

(b) Calculate the own-price elasticity of demand at the average values given above.

(c) Calculate the income elasticity of demand at the average values given above.