Price of good A (RM)

Quantity demanded for good B(kg)

Quantity demanded for good C(kg)

Consumers Income

20

200

200

2,000

25

160

300

1,800

30

120

400

1,600

35

80

500

1,400

1. Determine the cross elasticity of demand for good B when the price of good A increases from RM25 to RM35 per kg.
2. What is the relationship between good B and good A.
3. Calculate the income elastic of demand for good C when income increases from RM1,600 to RM2,000.
4. Based on question (d) above, good C is a (n)____________ good.
5. Explain any TWO (2) factors that influence the price elasticity of demand.