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36. Suppose that when your income increases from $28,000 to $30,000 per year, your purchases of X increase from 4 to 5 units because of that income increase. Thus: A) X is an inferior good. B) the demand for X is elastic with respect to income. C) the income effect exceeds the substitution effect. D) X is a substitute good. E) both A and C are correct. Use the following to answer questions 37-38: BRITISH COLUMBIA Has surplus autos Wants lettuce ONTARIO ALBERTA Has surplus lettuce Has surplus apples Wants apples Wants autos 37. On the basis of the information provided it can be said that: no coincidence of wants exists between any two provinces. a coincidence of wants exists between British Columbia and Ontario. a coincidence of wants exists between Ontario and Alberta. a coincidence of wants exists between British Columbia and Alberta. E) none of the above. On the basis of the information provided and assuming trade occurs between the three provinces we can expect: Alberta to exchange apples with Ontario and receive money in return. B) Alberta to exchange apples with British Columbia and receive money in return. Ontario to exchange lettuce with British Columbia and receive autos in return. none of the above to occur