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A compute and interpret using a one percent change the

THE FOLLOWING IS THE DEMAND FUNCTION FOR SUGAR:

Q_s = 20 -5P_s + 3P_e + 6Y

Where Q_s = demand for sugar (in pounds)

P_s = $5 = price of "sugar" for pounds

P_e = $50= price of "equal" pounds

Y = $100 = per capital income for a week

A. Compute and interpret (using a one percent change) the price elasticity.

B. Compute and interpret (using a one percent change) the cross price elasticity.

C. Compute and interpret (using a one percent change) the income elasticity.

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