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m 1. Two products have a cross-price elasticity of demand of 3. These products are Complements Substitutes Choose Answer Inferior goods Independents 9.057. 2. Inferior goods have an income elasticity of demand that is . Ab 1 1: Adm Choose Answer c. Between 0 and 1 d. Negative 3. A producer is willing to increases quantity by 5% when price increases by 1%. The price elasticity of supply is a. Perfectly inelastic b. Inelastic Choose Answer c. Elastic d. Perfectly elastic 4. The percent change in quantity demanded of one product caused by a small percent change in the price of the other product is a. Income elasticity of demand b. Price elasticity of supply c. Cross-price elasticity of demand d. Price elasticity of demand Choose Answer 5. A product has an income elasticity of demand of E = 1/z . This product is a(n) a. Inferior good b. Normal necessity c. Normal Luxury d. Substitute Choose Answer 6. Which of the following curves is most elastic at the given price? Choose Answer Use the following curves for questions 7-9 (Each mark equals 1) 7. What is the price elasticity of demand for the above change? a. -3 b. -2 Choose Answer C . -1 d. -0 8. The quantity supplied at the new equilibrium is a. b. 2 Choose Answer C. d. 09. The shift in the supply curve picture above could be caused by An increase in income An increase in population An expectation of a price decline None of the above Choose Answer 999'.\" 10. With greater supply elasticity, a price change will lead to a greater change in Qs the same change in Q5 a lesser change in Q5 no change in Q5 Choose Answer 9.9 9".\