=+9.3 The following are intended to explore what kinds of cross-price demand relationships are logically possible in a two-good model with exogenous income.

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

a. A good is normal and its cross-price demand relationship is positive.

b. A good is normal and its cross-price relationship is negative.

c. A good is inferior and its cross-price relationship is negative.

d. Tastes are homothetic and one of the good’s cross-price relationship is negative.

e. Tastes are homothetic and one of the good’s cross-price relationship is positive.