1. The Coyote Corporation, a large conglomerate, estimates that the income elasticity of demand is 1.3 for its paper products and 0.8 for its oil products. Other things remaining the same, a given percentage decline in income should:

1. produce a bigger percentage decline in the demand for paper products than for oil products
2. produce a bigger percentage decline in the demand for oil products than for paper products
3. have the same percentage impact on both product groups
4. product a bigger percentage increase in the demand for paper products than for oil products
5. produce a bigger percentage increase in the demand for oil products than paper products.