General Information:This question has 2 blank spaces.5 points in total.

Instructions:Report all monetary values up to 2 decimal places.Do not use any commas.Where applicable, use only the words/phrases provided inred

1.The short-run price elasticity of demand for oil (in absolute terms) is 0.3.If new discoveries of oil increase the quantity of oil by 6 percent, what will be the resulting change in the price of oil?(5points)

Complete the sentence by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space:decrease|increase

in the second space: a numerical value

As a result of the new discoveries of oil, the market price will________by________percent.

2 .Suppose the cross-price elasticity of demand between goods X and Y is - 5. What can you say about the relationship between good X and Y, and how much would the price of good Y have to change in order to increase the consumption of good X by 50 percent?(7points)

Complete the sentences by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space:complements in consumption|inferior goods|normal goods|substitutes in consumption

in the second blank space:decrease|increase

in the third blank space: a numerical value

Goods X and Y are______________.In order to increase the consumption of Good X by 50 percent, the price of Good Y would have to___________by___________percent.