Suppose your family runs a Greek yogurt factory that is famous in your town for its unique Greek yogurt. After attending BECN 330 for nearly ten weeks, you really feel like helping your father to make better pricing decisions. To begin with, you search for a market survey company to find out the demand curve for your Greek yogurt, which turns out to be: Qd = 10 - 3Px + 6Py - 1M + 4H (Demand Curve) where Qd is the quantity demanded in the U.S. (in thousands of packages), Px is the price for a package of Greek yogurt, Py is the price for a package of Roman yogurt, M is the median income in your town, and H is all other factors. Px= $2, Py = $1, M = $20, and H=6.

Derive the inverse demand function for Greek yogurt using the current values.
Suppose that Px increases from 2 to 3. Using the arc elasticity formula and the demand curve, calculate the price elasticity of demand. Is it elastic or inelastic?
Calculate the own-price elasticity at the initial price and its corresponding quantity demanded using the current values. Is it elastic or inelastic?