Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

تمرين 10

Suppose that the price of Product A falls from $20 to $15. In response, the quantity demanded of A increases from 100 to 120 units. The quantity demanded for Product B increases from 200 to 300. Calculate the arc cross elasticity between Product B and Product A. Is B a substitute or complement for A Explain. Does Product A follow the "law of demand " Explain.