Use the formulas for elasticity to answer the following questions.

a. When Mariba’s income rises by 10 percent, her expenditures on carrots rise 12 percent. What is Mariba’s income elasticity of demand for carrots? Are carrots, for her, a normal or an inferior good?

b. Suppose that the price elasticity of demand for milk is 0.6. If a grocer raises the price of milk by 15 percent, by what percentage will milk sales decrease as a result of the price increase? Will the grocer’s revenue from milk sales go up or down?

c. Suppose that the price elasticity of supply for paper is 1.5. You notice that the quantity of paper supplied decreases by 6 percent as the result of a change in the price of paper. Determine by what percentage the price of paper must have declined.

PYTHON (Conditionals)

Create a module to calculate the amount of royalties that Parker Schnabel must pay Tony Beets at the end of the gold mining season based on the following contractual agreement. When the amount of gold mined is 3000 ounces or less the rate is 15% of the gold value. This lower royalty rate is stored in a variable named lowerRate. When the amount of gold mined is greater than 3000 ounces the royalty rate is 20%. This higher rate is stored in a variable named goldRushRate and is applied only to the amount over 3000 ounces. The price of gold is currently $1783.00. This amount is stored in a variable defined as priceGold. The number of ounces mined is stored in a variable integer ouncesMined. You should ask Parker to input the number of ounces that he mined this season and print out “Based on x ounces mined, you paid y in royalties.” You will need to multiply the ounces of gold mined by the price by the royalty rate to produce the proper royalties.Create a module to calculate the amount of royalties that Parker Schnabel must pay Tony Beets at the end of the gold mining season based on the following contractual agreement. When the amount of gold mined is 3000 ounces or less the rate is 15% of the gold value. This lower royalty rate is stored in a variable named lowerRate. When the amount of gold mined is greater than 3000 ounces the royalty rate is 20%. This higher rate is stored in a variable named goldRushRate and is applied only to the amount over 3000 ounces. The price of gold is currently $1783.00. This amount is stored in a variable defined as priceGold. The number of ounces mined is stored in a variable integer ouncesMined. You should ask Parker to input the number of ounces that he mined this season and print out “Based on x ounces mined, you paid y in royalties.” You will need to multiply the ounces of gold mined by the price by the royalty rate to produce the proper royalties.