Exercise3 for Exy 1. We would expect the cross elasticity of demand between dress shirts and ties to be A. positive, indicating normal goods. B. positive, indicating complementary goods. C. negative, indicating substitute goods. D. negative, indicating complementary goods. 2. Compared to coffee, we would expect the cross elasticity of demand for A. tea to be negative, but positive for cream. B. tea to be positive, but negative for cream. C. both tea and cream to be negative. D. both tea and cream to be positive. L Income Quantity (C) Demanded Quantity Demanded 0 Quantity of B Demanded (D) 0 Income 0 Quantity of E Demanded Exercise4 Refer to the diagram. 1. The case of substitute goods is represented by figure 2. The case of a normal good is represented by figure 3. The case of an inferior good is represented by figure 4. The case of complementary goods is represented by figure