1 if the income elasticity of demand for lard is -300 that

Reference no: EM13377984

1. If the income elasticity of demand for lard is -3.00, that means that:

a.lard is a substitute for butter

b.lard is a normal good

c. lard is an inferior good

d. more lard will be purchased when its price falls

2.Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is:

a.negative and therefore these goods are substitutes

b.negative and therefore these goods are complements

c.positive and therefore these goods are substitutes

d.positive and therefore these goods are complements

Reference no: EM13377984

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