The demand for personal computers can be characterized by the following elasticities: price elasticity = -5, cross-price elasticity with software = -4, income elasticity = 2.5, and advertising elasticity = 1. Indicate whether each of the following statements is true or false, and explain your answer.

a) A price reduction for personal computers will increase both the number of units demanded and the total revenue of sellers.(2 marks)

b) The cross-price elasticity indicates that a 1% reduction in the price of personal computers will cause a 4% increase in software demand.(2 marks)

c) Computers are normal goods.(2 marks)

d) In response to an income fall of 1%, computer manufacturers cut prices by 1%, the quantity demanded for computers rose as a result.(2 marks)