Question 5. (50 points, 5 each) Indicate whether the following statements are true, false or uncertain and briefly explain why. Your grade will depend on your explanation. a. If the absolute value price elasticity of demand for good X is less than the absolute value price elasticity of demand for good Y, then the % increase in sales revenue of X will be greater than the % increase in sales revenue of Y. b. The sum of the uncompensated cross-price elasticities of demand of good x with respect to changes in the prices of all other goods is equal to the negative of the uncompensated own-price elasticity of demand for good x. c. Assume that demand function includes of income, price of x, and price of y. If all of these income and prices increases by two times, demand will increase by two times too. d. Two goods are gross substitutes if a rise in the price of one causes an increase in the quantity demanded of the other holding utility constant. e. A market demand curve that holds money income constant is more elastic than corresponding demand curve (passing through the given point) that holds utility constant if the good is inferior. f. The income effects for Normal, Inferior and Giffen goods are similar. g. For people that spend less on housing than on cars, the compensated cross-price elasticity of demand for housing with respect to the price of cars must be greater than the compensated cross-price elasticity of demand for cars with respect to the price of housing. h. An inferior good can not become a luxury good, nor can a luxury good become an inferior good. i. The uncompensated own-price elasticity of demand for good X is always greater than the compensated own- price elasticity of demand for good X. j. The value of consumer surplus will increase if price decreases