Substitutes, complements, or unrelated? Data collected In the imaginary economy

Question

Substitutes, complements, or unrelated? Data collected In the imaginary economy of Chipolaysia reveals that when the price of drof increased by 25%, the quantity of drof sold decreased by 20%, and the quantity of frim demanded increased by 15%. What is the cross-price elasticity of demand between frim and drof? 0. 6 -0. 6 0. 75 -0. 75 Which of the following can you conclude based on this information' Cheek all that apply. Drof and frim are unrelated. The demand for drof is price inelastic in this price range. The demand for frim is price Inelastic in this price range. Drof and frim are complements.

Explanation / Answer

=-15%/25% = -0.6 Drof and frim are complements

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