The state of Georgia is the largest state producing peaches. Working as a consultant to the Peaches Producer Association, an agricultural economist from the University of Georgia - Atlanta estimates the demand function for Peach Strudel as: Q p = 10 - 5Pp - 2PC + 1.8 Pa + 0.91Y Where Qp = Quantity of Peaches; Pp = Price of Peaches /unit; Pc = Price of sugar per unit; Pa = Price of Plums per unit, Y = Average Per-Capita Income The initial values of the variables are Pp= $4/unit, Pc = $2.5; Pa = 5/unit and Y = $2000. a. Using the information provided, what is the corresponding own-price arc elasticity of demand if the price of peaches rises to $5/unit? Is the calculated elasticity price elastic or inelastic? Based on your answer should the seller raise prices? Why or Why not? b. If income (Y) increases to $2500 and with all other variables held at their initial values, what's the corresponding income arc elasticity of demand? Why? Using your calculations, how much demand will decrease, if the income decreases by 10%? Why? c. If Pa increases to $8 with all other variables held at their values, what is the corresponding cross-price elasticity demand? d. Are Peaches an inferior or normal good? Are Product A and Product B substitutes or complements? Why? Explain