Question: Suppose the estimated supply and demand for blackberries in Ejido are given by \(\ln Q=0.5+0.6\ln p\), and \(\ln Q=1.2-0.4\ln p+0.1\ln {{p}_{s}}+0.1\,\,\ln I\), where Q is the quantity of blackberries in hundreds of thousands (00000) of kilograms per year, p is the price in Bolivars of a kilogram of blackberries, ps is the price in Bolivars of a kilogram of strawberries, and I is the average income in thousand of Bolivars per year.

A) Suppose the price of Strawberries is Bs. 4 per kilogram and the average income in Ejido is Bs. 30. Find the equilibrium price and quantity of blackberries in the market (hint: round every number to two decimals)

B) Estimate demand and supply price elasticity at the equilibrium point and estimate total expenditure on blackberries (Hint: what is the elasticity in a log-linear function)

C) Compute the respective cross price and income elasticity. What type of goods are blackberries and strawberries? what type of good are strawberries with respect to income?