Question: he following preposition is given: CXX + CYY = 1 where CX is the proportion of the consumers income I spent on commodity X, i.e.,

he following preposition is given: CXX + CYY = 1 where CX is the proportion of the consumers income I spent on commodity X, i.e., CX = PXQX/I, X is the income elasticity of demand for commodity X. CY is the proportion of income spent on commodity Y, i.e., CY = PYQY/I, Y is the income elasticity of demand for commodity Y. Also suppose that a consumer spends 75% of his or her income on commodity X and the income elasticity of demand for commodity X is 0.9. Assume that the individual consumes only commodities X and Y. (i) Find the income elasticity of demand for commodity Y. (2 marks) (ii) What kind of commodity is Y? X? How high would the income elasticity of demand for X have to be before commodity Y becomes inferior

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