1. describe the formula for the cross price elasticity of demand. If the cross price elasticity of demand between two products, have a negative value, does this mean the products or substitutes or complements if the cross price elasticity of demand between two products have a positive value does this mean the products are substitutes or complements?

2. From the article: "... grocers... have launched a campaign this year to allow the sale of wine in grocery stores... they argue putting wine along side the beer... on their shelves will make things more convenient for customers..." assume the grocery stores in Connecticut are allowed to sell wine along side of beer. If store owners believe that a decrease in the price of beer, will cause consumers to substitute beer for wine with this mean they believe the cross price elasticity of demand between beer and wine as a negative value or a positive value? Briefly explain your answer.

3. A research study found that the price elasticity of demand for beer is equal to -0.30 holding everything else constant if the price of beer increases by 10%. How much will the quantity demanded for beer change? Do we know how much the quantity demanded for one will change? Briefly explain why or why not.

4. A research study found that the cross price elasticity of demand between beer and wine is equal to -0.83. Does this elasticity value mean that wine and beer are substitute goods or complementary goods?