1.If the price of good A goes up by 3 percent and the quantity demanded of good B goes down by 3 percent, which of the following is true?

a.The goods are substitutes and cross-price elasticity is 1.

b.The goods are substitutes and cross-price elasticity is 1.

c.The goods are complements and cross-price elasticity is 9.

D. The goods are complements and cross-price elasticity is 1.

e.The goods are complements and cross-price elasticity is 1.

2.If the income elasticity of demand for a good is -4, then

a. quantity demanded decreases by 4 percent while income increases by 1 percent

b.quantity demanded increases by 4 percent while income increases by 1 percent

c.quantity demanded and income percent changes are indeterminate

d.quantity demanded and income decrease by 4 percent

e.quantity demanded and income increase by 4 percent