QUESTION: Suppose demand is for pizza is given by

Q ^d = 200 – 0.5*P ^p -0.25*P ^b +50*D +0.01*I

where Q ^d is quantity demanded, P ^p is the average price in dollars of a medium-sizes pizza, P ^b is the average price of beer per six pack, D is a variable which takes the value 1 when it is football season and takes the value 0 otherwise, and I is personal disposable income. Calculate the price elasticity of demand, cross-price elasticity of demand and income elasticity of demand when P ^p = $8, P ^b = $12, D =1 and I =$10,000. Show all calculations. Interpret each of your results.

Price: $2.99

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Deliverable: Word Document