A recent study determined the following elasticities for Picanto:   Price elasticity of demand = 3 Income elasticity of demand = 2.5   The supply of Picanto is elastic. Based on this information, are the following statements true or false? Explain your reasoning.   A 10% increase in the price of a Picanto will reduce the quantity demanded by 30%.  An increase in consumer income will increase the price and quantity of Picantos sold.

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