Problem:
Demand function for bicycles in Holland has been estimated to be Q = 2,000 + 15 Y − 5.5 P where the Y is income in thousands of Euros, Q is the quantity demanded in units, and P is price per unit. When the P = 150 Euros and Y = 15(000) Euros, find out the following:
a. Price elasticity of demand
b. Income elasticity of demand
Additional Requirements:
Level of Detail: Show all work