1. The demand for cheese in a grocery store is given by the equation Q^D = 1,200 - 15P - 0.1Y + 80P_H, where P is the price of cheese, Y is the average income of consumers, and P_H is the price of ham. Based on this demand equation, we can conclude that ___ for customers in this store.

a. cheese is an inferior good

b. the cross-price elasticity of demand for cheese with respect to ham price is negative

c. cheese is a complement to ham

d. the demand for cheese is price elastic

e. the demand for cheese is income elastic

2. In 2015, there was a large increase in the price of eggs in some regions in the U.S. The large price change can be explained by a relatively small decrease in egg production (due to a bird-flu outbreak) together with ...

a. demand that was very inelastic.

B. supply that was very elastic.

c. large decrease in demand.