The equation for a demand curve has been estimated to be Q = XXXXXXXXXX P + 0.5 Y , where Q is quantity, P is price, and Y is income. Assume P = 7 and Y = 50. a. Interpret the equation. b. At a price...

Q
is quantity,
P
is price, and
Y
is income. Assume
P
= 7 and
Y
= 50.

a. Interpret the equation.

b. At a price of 7, what is price elasticity?

c. At an income level of 50, what is income elasticity?

d. Now assume income is 70. What is the price elasticity at
P
= 8?