1) XED looks at the relationship between a) demand and supply b) substitutes and complements c) income and demand d) price and demand 2) Cars and Petrol have a a) positive XED b) negative XED c) 0 XED 3) The "sign" + denotes that the goods are a) elastic b) substitutes c) complements d) no relationship 4) A complement of tea would be a) coffee b) milk c) paper d) latte 5) A 10% rise in the price of fish may cause demand for chicken to increase by 2%. The XED is a) -0.2 b) +0.2 c) -2 d) +2 6) Which Figure could be interpreted as tennis balls and tennis rackets? a) -2 b) 0 c) +2 7) if the answer is +4 then a 10% increase in price of one good would result in how much an increase in demand for the other good? a) 4% b) 10% c) 40% d) 45% 8) Paper and socks have a) a + XED b) a - YED c) no relationship 9) Always consider the sign when calculating XED a) True b) False

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