Graph linear supply functions, which represent (i) an elastic function; (ii) a unit elastic function; and (iii) an inelastic function.

Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) increases by 39 percent. The income elasticity of demand for this brand of car is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)

Can you explain the difference between an elastic and inelastic product?

Suppose the Constant Elasticity demand function is Q = K ×p15 × p24 × I7. Calculate the own price, cross prices and income elasticity of demand.