a store lowers the price of good B from $5.00 each to $4.00 each. As a result, the demand for good A increases from 50 units per day to 80 units per day.

Questions:

(a) Calculate the cross elasticity of demand for good A with respect to good B(3 marks)

(b) What relationship exists between goods A and B? Please explain...(2 marks)

(c) What type of cross elasticity would you expect between tennis rackets and tennis balls? Please explain... (2 marks)