Question 1 True, False, or Uncertain? Justify your answers. (a) (5 marks) Inflation and the rising cost of living are currently a big problem. Suppose that the prices of all the goods in your consumption bundle increase at the same rate of 5%. The Union negotiated a nominal salary increase of the same rate, 5%. You are equally well off. (b) (5 marks ) Tom consumes only two goods, X and Y. He spends 40% of his income in X. Tom's income elasticity of demand for X is B, where B > 0. Tom's (Marshal- lian) demand for X has a price elasticity equal to -0.43. X and Y are perfect complements for Tom. [Hint: Slutsky equation.]