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The demand function for a good is given by Qd = 100 + 0.01I - 5P + 3P1 where I is the average household income and P1 is the price of a related good.
(a) What is the relationship between these two goods?
(b) calculate the income, cross price, and own price elasticity of demand if I = $35,000, P1 = $20, and P = $35.
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