1.Cross Price Elasticity of Demand

a.If the cross price elasticity between products A and B is equal to 3.7, would the two

products be classified as complement, substitute, or unrelated goods?

1. If the cross price elasticity between products A and B is equal to -0.2, would the two

products be classified as complement, substitute, or unrelated goods?

1.Income Elasticity of Demand

a. If the income elasticity of demand for a product is equal to 1.6, would this product be classified as a normal or inferior good?If it is a normal good, would it be considered a

luxury or necessity?

1. If the income elasticity of demand for a product is equal to 0.3, would this product be classified as a normal or inferior good?If it is a normal good, would it be considered a luxury or necessity?

c.If the income elasticity of demand for a product is equal to -2.9, would this product be classified as a normal or inferior good?If it is a normal good, would it be considered a luxury or necessity?