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Question 5 1 / 1 pts The larger the positive cross elasticity coefficient of demand between products X and Y, the Correct! O greater their substitutability. O stronger their complementariness. O less sensitive purchases of each are to increases in income. O smaller the price elasticity of demand for both products. Question 6 1 / 1 pts We would expect the cross elasticity of demand between Pepsi and Coke to be Correct! O positive, indicating substitute goods. O positive, indicating inferior goods. O positive, indicating normal goods.The formula for cross elasticity of demand is percentage change in O price of X/percentage change in quantity demanded of Y. O quantity demanded of X/percentage change in income. Correct! O quantity demanded of X/percentage change in price of Y. O quantity demanded of X/percentage change in price of X. Question 4 1 / 1 pts Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in O the price of that same product. O the general price level. O income. Correct! O the price of some oQuestion 7 1 / 1 pts We would expect the cross elasticity of demand between dress shirts and ties to be Correct! O negative, indicating complementary goods. O positive, indicating complementary goods. O negative, indicating substitute goods. O positive, indicating normal goods.Suppose the income elasticity of demand for toys is +2.00. This means that O toys are an inferior good. O a 10 percent increase in income will increase the purchase of toys by 2 percent. O a 10 percent increase in income will decrease the purchase of toys by 2 percent. Correct! O a 10 percent increase in income will increase the purchase of toys by 20 percent. Question 2 1 / 1 pts If the income elasticity of demand for store brand macaroni and cheese is -3.00, this means that O store brand macaroni and cheese is an inferior good. O store brand macaroni and cheese is a normal good. Correct! O more store brand macaroni and cheese will be purchased when its price falls.Suppose that a 10 percent increase in the price of normal good Y causes a 20 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is O negative, and therefore these goods are complements. O positive, and therefore these goods are complements. O negative, and therefore these goods are substitutes. Correct! O positive, and therefore these goods are substitutes. Question 10 1 / 1 pts Most goods can be classified as normal goods rather than inferior goods. The definition of a normal good suggests that Correct! the income elasticity for the good is greater than 0.Question 8 1 / 1 pts The diagram suggests.. Price of X 0 Quantity Demanded of Y O X and Y are both normal goods. O X and Y are both inferior goods. O X and Y are substitute goods. Correct! O X and Y are independent goods