"If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for gasoline? (Hint: Use the income-elasticity values in Table 3-4.) Table 3-4 Estimated income elasticity of Demand (E?) CommodityIncome Elasticity Gasoline (US)c1.20 12.) (a) If the price of pork increases by 10 percent, by how much does the demand for beef change? (b) If the price of entertainment increases by 10 percent, by how much does the demand for food change? (Hint: Use the cross-price elasticity values in Table 3-5) Table 3-5 Estimated Cross-Price Elasticity of Demand (Exy) between Selected Commodities Commodity XCommodity YCross-Price Elasticity Entertainment (US) Food (US)-0.72e Problems 3.) Starting with the estimated demand function for Chevrolets given in Problem 2, assume that the average value of the independent variables changes to N=225 million, I=$12,000, PF=$10,000, PG=100 cents, A=$250,000, and PI=0(i.e., the incentives are phased out). (a) Find the equation of the new demand curve for Chevrolets. (b) If Pc is $10,000, find the value of Qc? 7.) The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -0.4. By law, the public transportation authority must take steps to eliminate its operating deficit. 7(a) is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand. 7(b) Use equation (3-7.) Suggestion: increase the price of a ride from$1 to be $1.50, a 50% increase in price. Given the price elasticity of demand of -0.4, calculate the percentage change in the ride and the total new rides (the original rides are 100 million = $100 million/$1). Use the total new rides and new price of $1.50 for new total revenues. "