=+9.2 The following are intended to explore what kinds of own-price demand relationships are logically possible in

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=+9.2 The following are intended to explore what kinds of own-price demand relationships are logically possible in a two-good model with exogenous income (unless otherwise specified).

A. For each of the following, indicate whether the relationship is possible or not and explain:

a. Tastes are homothetic and the own-price demand relationship is positive.

b. A good is inferior and its own-price relationship is negative.

c. In a model with endogenous income, a good is normal and its own-price demand relationship is negative.

d. In a model with endogenous income, a good is normal and its own-price demand relationship is positive.

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