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A. Supposethecrosselasticityofdemand forproductsAandBis+3.6andfor productsCandDis-5.4.Whatcanyouconclude aboutproductsAandB?Products CandD? B. The income elasticities of demand for movies, dental services, and clothing havebeenestimatedto be +3.4, +1 and +0.5, respectively.

A. Supposethecrosselasticityofdemand forproductsAandBis+3.6andfor productsCandDis-5.4.Whatcanyouconclude aboutproductsAandB?Products CandD?

B. The income elasticities of demand for movies, dental services, and clothing havebeenestimatedto be +3.4, +1 and +0.5, respectively. Interpret these coefficients.Whatdoesitmeanifanincomeelasticitycoefficientisnegative?

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