Calculate the price elasticity of demand for dog food

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The demand for dog food, in pounds, is Q^D = 4 - 2P + (1/100)(1) where P is the price of dog food and I is income. Assume initially that P = 1 and I = 100.

(a) Using calculus calculate the price elasticity of demand for dog food.

(b) Using calculus calculate the income elasticity of demand for dog food.

(d) Is dog food a luxury good or a necessity? Briefly explain your answer.

Reference no: EM131236569

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