3. (6 points) Suppose the income elasticity of demand for a luxury good is 3 and the cross-price elasticity of

demand between it and the price of a complementary good is -6.Determine how much the consumption of this

good will change if:

a. The price of the complementary good falls by 20 percent.

b. Consumer incomes fall by 3 percent on average.

c. Both the price of the complementary good and consumer incomes rise by 5 percent.