Explain the considering phases of elasticity. How income elasticity defines normal and inferior goods, calculate and define them from the following Schedule-1? How cross elasticity explain complementary and substitute goods? Suppose the price structure of two goods are showed below at schedule-2. Define whether they are substitution or complimentary?

Income (I) Quantity Demand (Qx)

800 160

1200` 320

1600 400

2400 480

3200 320

Table 1: Income Consumption Ratio

Product A Product B

Initial price $.69

Final price $.59

Initial quantity demand 680 million

Changed quantity demand 680 million

Table 2: Cross Price Elasticity