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5.1 (a) Are the following statements about elasticities true or false?
(i) If income elasticity is positive, the commodity is called an inferior good
(ii) If two goods are complements, the cross elasticity will be negative
(iii) If price elasticity is greater than 1, demand is said to be inelastic
(iv) Unrelated products would have a cross elasticity of infinity
(b) Which three of the following reasons would result in a shift of the demand curve to the right for a normal good?
A A fall in the price of substitutes
B A change in taste towards a competitor good
C An increase in household incomes
D An expected future rise in the price of the good
E A rise in the price of complements
F An increase in population
答案：
5.1 (a) (i) False An inferior good would have negative income elasticity
(ii) True
(iii) False If price elasticity is less than 1, demand is said to be inelastic
(iv) False Unrelated products has a cross elasticity of zero.
(b) C, D and F
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