Suppose you estimated the demand function for the above Vodafone firm using a sampletaken from residents in Addis Ababa as follows:??= ??-?.???? +?.???-?.???? where??,??,?, and?? are the level of quantitydemanded, price of Vodafone voice call fee, the income of the Vodafone telecom potentialcustomers, and price of Ethiotelecom voice call fee, respectively. Also, assume that allvariables are measure innatural logarithm.A.Identify and interpret the price, income and cross-price elasticity of demand.B.What will be your recommendation for the general manager of the Vodafone firmconsidering the price elasticity of demand and why?C.Are the Vodafone voice services substitute or complements to the ethiotelecom voiceservices taking into account the above-estimated demand function, not taking intoaccount what you know or what you expect. What is the message or implication of such relationship to the general manager?
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