Suppose that you have the following demand curve. Q  800  12P .01I Q = quantity demanded P = price and I= average income. You know that the current market price is $40 and average income is $40,000 i. Calculate current demand. ii. Calculate the price elasticity of demand iii. Calculate the income elasticity of demand

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Suppose that you have the following demand curve. Q  800  12P .01I
Q = quantity demanded P = price and I= average income.
You know that the current market price is $40 and average income is $40,000
i. Calculate current demand.
ii. Calculate the price elasticity of demand
iii. Calculate the income elasticity of demand

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