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Q. Given a Demand function Q = f (P, PO, Y) = YPO/P2, where P is the price of the good, PO is the price of another good also Y is the income level:
a. Calculate the total differential of Q. For the next three questions the answer should be a number:
b. Calculate the price elasticity of Demand EQP.
c. Calculate the income elasticity of Demand EOY.
d. Calculate the cross elasticity of Demand EQPo.
e. Is the good a normal good also Explain why?
f. Is the other good a complementary good or a substitute good also Explain why?
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