Use your calculation of income elasticity in the previous question to categorize the demand for this good. Indicate your categorization in the space below.

Your weekly income is $60. The price of a Cool Lime Starbucks Refresher is $2, and the price of a Strawberry Acai Starbucks Refresher is $3. How many Cool Lime Starbucks Refreshers (L) and Strawberry Acai Starbucks Refreshers (S) do you optimally consume per week? Enter the values for L and S.  The value for L is [ans1] and the value for S is [ans2].

How many performances at DPAC (x) must you give up in order to attend one more hockey game (y), when your bundle includes x=6 and y=21? I must give up the following number of DPAC performances: [ans1]

Optional Extra Credit Question: In the real-world application article, “Conversion Rate Optimization: From a Luxury to a Necessity in 2016,” companies’ websites seek to attract a large number of customers through

PART II (5 open-ended questions, multiple parts, 70 points total)

How many hockey games (y) are you willing to give up in order to attend one more performance at DPAC (x), when your bundle includes x=6 and y=21? I’m willing to give up the following number of hockey games: [ans1]

Use the prompt below to answer questions 23-26. Suppose that during the colder months in South Bend, you pass the time by attending performances at DPAC (x) and hockey games (y). The discounted student prices for these events are Px=$2 and Py=$3. Assume you spend your entire budget allocated to attending these events. Your tastes and preferences for DPAC performances and hockey games can be described by the following utility function:

Using the terms provided, indicate which categorize the demand for generic-brand house paint, based on the information provided by the estimated demand function?

Use the prompt below to answer question 22. Consider the following demand function and related statistics for generic-brand house paint:

Optional Extra Credit Question: The real-world application article, “Kroger vs. Walmart vs. Aldi: Which is the Cheapest Grocery Store?” argues that Aldi customers maximize utility because this store