You own a vegan bakery and you have paid a marketing firm to estimate the demand for your banana muffins. They have produced this demand function: QDemanded = 200 - 2*P - .8*M + 2*PR where P is the price of your muffins, M is income and it is $120,000 (but just enters as "120") and PR is the price your competitor charges for their muffins which is $5. You are currently charging a price of $3 for your muffins. Determine the quantity demanded and then use that to identify the Income Elasticity of Demand for your muffins. NOW, having done that, use that Income elasticity to answer this question: What will be the percent change in the quantity demanded of your muffins if incomes increase by 10%. Multiple Choice A decrease in quantity demanded of approximately 10.8% A decrease in quantity demanded of approximately 9.6% A decrease in quantity demanded of approximately 8.8% A decrease in quantity demanded of approximately 6.4%