1)Suppose that a local auto dealership offers a $5,000 cash-back rebate on a $30,000 automobile and sales increase by 20%.(a) is the price elasticity of the automobile elastic or inelastic (show calculations) and (b) if companies objective is to increase revenue (PxQ), then was the rebate a good idea, i.e., did the rebate increase revenue(explain in one sentence)?

2)Suppose Frito-Lay reduces the price of their chips by 10% and the quantity of dips sold increases by 15%. (a) what concept does this illustrate and (b) based on the calculation, are the products complements or substitutes?(Explain your responses to the questions).