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Numerical Problems: For these numerical problems provide ONLY your final answer

Suppose that a consumer consumes only two goods, good x and good y. Assume that (q=20, I=50) and (q'=23, I'=60) are two points on the consumer's Engle curve for good x. Assume that good y is a normal good. Which of the following statements is true?

  1. The income elasticity of good y is negative.
  2. The income elasticity of good x is positive.
  3. The income consumption curve between good x and good y has a negative slope.
  4. The Engel curve for good y has a negative slope.
  5. None of the above.

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