1. If the P of Product A falls from $3 to $2 and the Qd of Product B falls from 10 units to 8 units, the two products Edc =

A) .6 and the two goods are complements.
B) -.6 and the two goods are subsituties.
C) .6 and the two goods are substitutes
D) -.6 and the two goods are complements
E) 2.4 and the two goods are substitutes

2. If the P of Product A goes up 10% and the quantity demanded of Product B goes down 5%, then the Edc =

A) 2 and the two goods are substitutes.
B) -2 and the two goods are complements
C) .5 and the two goods are substitutes
D) -.5 and the two goods are complements
E) Not enough information given.

3. Which of the following statements are true?

I. If the % change of the P of Product A is negative and if the % change of Qd is positive, the products are substitutes.

II. If the % change of the P of Product A is positive and if the % change of Qd is negative, the products are substitutes.

III. If the % change of the P of Product A is positive and if the % change of Qd is positive, the products are substitutes.

IV. If the % change of the P of Product A is positive and if the % change of Qd is negative, the products are complements.

A) I. and II. only
B) I. and IV. only
C) II. and IV. only
D) III. and IV. only
E) I., II., and IV.