Suppose that a consumer consumes only two goods good x and

Question

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.