2. After a careful statistical analysis, the Chidester Company concludes the demand function for its product  is Q = 500 - 3P + 2Pr + 0.1I where Q is the quantity demanded of its product, P is the price of its product, Pr is the price of its rival’s  product, and I is per capita disposable income (in dollars). At present, P = $10, Pr = $20 and I = $6,000. a. What is the price elasticity of demand for the firm’s product? b. What is the income elasticity of demand for the firm’s product? c. What is the cross-price elasticity of demand between its product and its rival’s product? d. What is the implicit assumption regarding the population in the market?

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