1. Suppose the price of ethyl alcohol rises by 20%. As a result, the demand for substitute hand soap rises by 10%

A. What is the cross-elasticity of demand for hand soap with respect to the price of ethyl alcohol.

A. 2 B. 0.5 C. -0.5 D. -2

B. Analysis on price elasticity:

C. Interpret your analysis on the kind of good

2. If a 20% decrease in the price of international calls lead to a 35% increase in the quantity of calls demanded, we can conclude that the demand for phone calls is:

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