1) A manager can determine if her product is viewed as a normal good or an inferior good by considering : - price elasticity

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1) A manager can determine if her product is viewed as a normal good or an inferior good by considering :

- price elasticity.

- cross elasticity.

- income elasticity.

- advertising elasticity.

2) Assume that product X has a negative cross elasticity with respect to shoes. If the price of shoes rises:

- the demand for product X will decrease.

- the quantity demanded for product X will increase.

- the demand for shoes will fall.

- the demand for product X will increase.

3)A luxury good has :

- a negative income elasticity.

- a cross elasticity of one.

- a very high income elasticity.

- a negative price elasticity.