If a 10 percent decrease in the price of good A increases the demand of good B by 20 percent, then A and B are*

1 point

A. Complements and the cross price elasticity equals -0.5.

B. Complements and the cross price elasticity equals -2.

C. Substitutes and the cross price elasticity equals -0.5.

D. Substitutes and the cross price elasticity equals -2.

E. Inferior goods.

. Tom purchases more tennis shoes when his income increases. Tennis shoes must be a(n) _________ good with a _____________ income elasticity.*

1 point

A. normal; negative

B. inferior; negative

C. normal; positive.

D. normal; negative

E. None of the above.