What is the relationship between good x and y

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Reference no: EM13223852

1. You have the following information about good X and good Y:

 Income elasticity of demand for good X: - 3

 Cross - price elasticity of demand for good X with respect to the price of good Y:

2.a. What type of good is good X (i.e. is it a normal or inferior good)?

b. What is the relationship between good X and Y (i.e. whether they are substitutes or complements)?

c. With the aid of a well-labeled diagram, show what happens to equilibrium price and quantity of good X, if the price of good Y increases.

Reference no: EM13223852

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