2. The following table shows the relationship between the price of good X and the quantity demanded for goods A, B and C (consumed by a household).

a.) Define:

(i). Cross elasticity of Demand

(ii). Income elasticity of Demand

b.) If the price of good X decreases from RM40 to RM20, Calculate the cross elasticity of demand for:

(i). Good X and A

(ii). Good X and B

c.) Determine how goods A and B are related to good X.

d.) Suppose that the income of the household increases from RM1,000 to RM1,400 and the demand for good C decreases from 80 to 60 units. Calculate the income elasticity of demand for good C and explain what type of good C is.