Suppose the price of Doritos fall from R12.50 to R8.50. As a result, the quantity of peanuts increases from 50 to
200. Calculate the cross-price elasticity using the arc formulae and interpret your answer.
Arc E d = [(Qd 2 - Qd 1 ) / midpoint Qd] [(P 2 - P 1 ) / midpoint P] [(Qd 2 - Qd... View the full answer