Q1. The demand for good X is estimated to be Qx
d = 10, 000 - 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is
Q2. ABC Company is considering a private placement of equity with XYZ Insurance Company.
Explain the interaction between ABC Company and XYZ. How will XYZ serve ABC's needs, and how will ABC serve XYZ's needs?