urban econ hw help

[20 points] Researchers analyzed the worldwide demand on the beer, yielding the following statistics: The average price and income elasticities of demand for beer are: i. 5],: -0. 5 0 and Si = 0. 60 0hr developed countries) ii. op: -0.35 and 8i: 0. 45 0hr developing and emerging countries) Please answer the following questions according to the statistics above. a. For which group of countries is beer consumption more price-elastic (more responsive to changes in price)? b. For which group of countries is beer consumption more income-elastic (more responsive to changes in income)? c. How would you explain (as a junior economist) the observed differences in beer consumption patterns across two groups? d. The state of Texas (where beer per capita consumption is 20% above national average) consumed 44.1 million gallons of beer in 2017. Assuming all other variables (such as population and average income) being constant, and the average price of beer $12 / gallon, how much should the price of beer increase so that the total state consumption goes down to 42 million gallons a year? [Texas is located in a developed country]. e. If the state of Texas did not want to manipulate prices, but instead levy a state-level income tax, what % should the tax rate be set in order to achieve the 42 million gallons consumption target? [Hint you do not need to know the income level; all you need is the required % drop in average income due to the new income tax]