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7. You have the following information about good X and good Y: Income elasticity of demand for good X is -3 Cross-price elasticity of demand

7. You have the following information about good X and good Y:

Income elasticity of demand for good X is -3

Cross-price elasticity of demand for good X with respect to the price of good Y is 2

Use this information to answer the following: Would an increase in income and a decrease in the

price of good Y unambiguously decrease the demand for good X? Why or why not?

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