1. For _____ goods, income elasticity is positive.

Instructions: You may select more than oneanswer. Click the box with a check mark for correct answers andclick to empty the box for the wrong answers.

a. normal

b. necessity

c. luxury

d. inferior

2. If a good has an income elasticity of 1.83, then it:

a. probably has a lot of close substitutes available.

b. is an inferior good, and a necessity.

c. is a normal good, and a necessity.

d. is a luxury.

2. If a good has an income elasticity of 1.83, then it:

a. probably has a lot of close substitutes available.

b. is an inferior good, and a necessity.

c. is a normal good, and a necessity.

d. is a luxury.

3. Suppose that when the price of peanut butter rises from $4 to$5 per jar, the quantity of jelly purchased falls from 15 millionjars to 12 million jars.
Instructions: Round your answer to two decimalplaces and include a negative sign if appropriate.
The cross-price elasticity of demand between peanut butter andjelly using the midpoint method is ________.

The goods are ________ (Complements/substitute)