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Question - Sahara demand and supply curves for No.2 pencils in are Qd = 100-20P and Qs =10+40P respectively. Given the price of No.2 pencils is $1.50
(a) Calculate the price elastic of demand and the price elasticity of supply when the price increase $2.00
(b) Determine Sahara income elasticity of demand if an increase in her income (from $10,000 to $11,500) doubles her demand for No.2 pencils.
Find the correlation coefficient between X and Y. Provide an explanation for your answer to part 2
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