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ThefunctionQ1=M/2P1 is a consumer demand function (where Q 1 = quantity of good 1, M = income, and P 1 is the price of good

ThefunctionQ1=M/2P1 is a consumer demand function (where Q₁= quantity of good 1, M = income, and P₁is the price of good 1).

a.) Derive the expression for price elasticity of demand. Be sure to write the correct formula in reporting the answers. (20 points)

b.)Suppose there has been a reduction in consumer income.How do you expect quantity demanded to change?Be as specific as you can with the mathematical analysis. (3 points)

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