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3. (15 points) Table 1 below gives the measure of income elasticity for two goods. Table 1 Good Income Elasticity X 0.87 Y 1.64 a)
3. (15 points) Table 1 below gives the measure of income elasticity for two goods. Table 1 Good Income Elasticity X 0.87 Y 1.64 a) (5 points) For each good, explain whether it is a normal or inferior good. b) Would you expect the cross-price elasticity of demand to be positive or negative for: (2 points) Oral B electric toothbrush with respect to Own Brand (Supermarket) electric toothbrush (2 points) Chicken curry with respect to rice at the local takeaway restaurant. c) (3 points) If entertainment and food in Indonesia has cross price elasticity of -0.72, explain the relationship of the two goods (3 points) If the price elasticity for public transport in Jakarta is 0.23 in the short-run and 1.89 in the long-run, explain what might the reason be
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