The given is natural logarithmic function. Ln(Q)=-0.23-0.34ln(P)+0.45ln(P2)+1.33ln(I)
Hint: Ln y= x ln a
(d/dx)ln y=(d/dx)x ln a= ln a (d/dx)x = ln a(1)= ln a
Where: P is price of raspberries P2 is price of blackberry I is income Q is quantity
a. What is the price elasticity of demand for raspberries?
b. What is income elasticity of demand?
c. What is cross-price elasticity of demand?
d. Is demand elastic for each good (raspberries, blackberry, and income)? Why? Please, explain.