With the aid of graph. Explain how time affects elasticity of supply. (b) Given the hypothetical demand function as QX =100 -5PX +0.1Y -20PY Whereby: QX = Monthly expenditures per Household kgs of meat. PY = Price per kg of chicken. = 4000 Tshs. PX = Price per kg of Meats. = 5000 Tshs.
Y = Monthly House Hold Income. 150,000 Tshs. REQUIRED: (i) Interpret the parameter?s estimate. (ii) At the stated values of the variables above, Calculate the weekly expenditures. (iii) Re-write the demand equation. (iv) Calculate the cross, price and income elasticity of demand