Question

. An estimate of the demand function for household furniture produced the following results: F = 0.0036Y1.08R0.16p-0.48 r2 =0.996 Where F = furniture expenditures per household Y = disposable personal income per household R = value of private residential construction per household P = ratio of the furniture price index to the consumer price index
a) Determine the point price and income elasticity’s for household furniture.