( MICROECONOMICS )Define and explain:

1. (i) The price elasticity of demand?
2. (ii) The income elasticity of demand?
3. (iii) The Cross-Price Elasticity of Demand?
4. (iv) Why should a firm or business entrepreneur understand the difference between each of the three concepts?
5. (v) Interpret the following two (2) Income Elasticizes of Demand (YED) and state if the goods are normal or inferior and explain your reasoning

YED= + 0.7YED= - 3.5

1. (vi) Interpret the following Cross-Price Elasticizes of Demand (XED) and state if the goods are substitutes or compliments and explain your reasoning(2.5 marks)

XED= + 0.7 XED= - 2.6