12. Recently, in Barangay Loyola Heights, the price of Banana fritters fell from Php8.00 to Php 7.00. As a result, the quantity demanded of Potato chips decreased from 120 to 100. Using the midpoint method, compute the cross-price elasticity. What does your answer tell you? Solution: a] % change in quantity demanded of potato chips 2 b) % change in price of banana fritters = c] Cross-price elasticity = (1] Since, crossprice elasticity is (positive, negative) e) These two goods are (complements, substitutes]