The JetGo Company is a major fixed-base operator (FBO) at a regional airport. Management estimates that the demand for the jet fuel is given by the equation: Where: QJF = 100 - 3PJF + 0.2Y + 2 PC

QJF is demand for jet fuel in thousands of gallons per year PJF is the price of jet fuel in dollars per gallon Y is GDP per capita (thousands of dollars) PC is the price of jet fuel in dollars per gallon on the adjacent airport.

Initially, PJF is set at $20 per gallon, Y is $400, and PC is $15 per gallon.

a. How many gallons of jet fuel will be demanded at the initial prices and income?

b. What is the point price elasticity at the initial values?

c. What is the point income elasticity at the initial values?