M.A. and B.Sc. Examination School of Economics & Finance EC1002 Microeconomics January 2007: Time allowed – 2 hours This paper has two sections. Answer ALL questions in Section A [60% of the marks]. Answer ALL the questions Section B [40% of the marks].SECTION AThis counts for 60% of the overall marks. There are twenty questions. Each question is equal valued. Write your answers on the first page of the examination booklet provided. 1. If razors and blades are complements, which of the following mustbe true for both goods? a) Own-price elasticity of demand is 0. b) Income elasticity of demand is negative. c) Income elasticity of demand is positive. d) Cross-price elasticity of demand is negative. e) Cross-price elasticity of demand is positive. (Please turn over for Question 2)
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