XED_answer

Answers

1.

+100/    +20%

= (+) 5

The positive sign means that the two goods are substitutes, and the co-efficient is greater than one, indicating that they are close substitutes.

2.

-30%/ +50%

= (-) 0.6

The negative sign means that the two goods are complements, and the co-efficient is less than one, indicating that they are not particularly complementary.