Answer the following questions:

a)Suppose that the income elasticities of three goods have been estimated to be 2.5, 3 and 2.5, respectively. Interpret these coefficients.The three goods are all necessity goods.The three goods are all luxury goods.The three goods are all inferior goods.Can not be determined with the information given.

b)Suppose that the cross elasticities of demand for products A and B is 0, and for products C and D is 5. What can you conclude about the relationship between products A and B, and the relationship between products C and D?Products A and B are complement goods while products C and D are substitute goods.Products A and B are normal goods while products C and D are inferior goods.Products A and B are independent goods while products C and D are substitute goods.Products A and B are inferior goods while products C and D are normal goods.