8. Substitutes, complements, or unrelated? You work for a marketing rm that has just landed a contract with Run-ofthe-Mills to help them promote three of their products: penguin patties, raskels, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-ofthe-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-ofthe-Mills provides your marketing rm with the following data: When the price of penguin patties increases by 4%, the quantity of raskels sold decreases by 5% and the quantity of mookies sold increases by 3%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing rm should advertise together: Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and mookies. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties. Relative to Penguin Patties Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties Raskels |:] V 'I' Mookies |:' V V