Suppose that in Tasmania the income elasticity of high-fat minced lamb meat is -0.20 and the price elasticity of high-fat minced lamb meat is -0.80.Suppose also that in Tasmania the cross-price elasticity of high-fat minced lamb and low-fat minced beef is +0.3 and the cross-price elasticity of high-fat minced lamb and onions is -0.2.

a.Is high-fat minced lamb meat a luxury, necessity or inferior good?

b.If the income of consumers of high-fat minced lamb meat increases by 10%, what is expected change in the demand for high-fat minced lamb meat?

c.Is high-fat minced lamb a complement or substitute to low-fat minced beef? Is high-fat minced lamb a complement or substitute to onions?

d.If the price of onions falls by 20%, what is expected to happen to the demand for high-fat minced lamb?

e.If the demand for high-fat minced lamb is linear (a straight line), is the marginal revenue for positive or negative.