Suppose a Consumer Only Consumes Goods X and Y, and Suppose

question 24

Multiple Choice

Suppose a consumer only consumes goods x and y, and suppose that x is a normal good while y is an inferior good.Which of the following is might be true?

• A)The cross-price elasticity of demand for x is positive.
• B)The cross-price elasticity of demand for x is negative.
• C)The own-price elasticity of demand for y is positive.
• D)The own-price elasticity of demand for y is negative.
• E)Both (a) and (c).
• F)Both (b) and (d).
• G)All of the above.
• H)None of the above.