At a major French food retailer, the own-price elasticities of the demand for various brands of pasta were: 1.36 for national brands, 2.16 for private labels, and 1.85 for low-price brands. At the same retailer, the own-price elasticities of the demand for various brands of biscuits were: 1.00 for national brands, 1.14 for private labels, and 0.50 for low-price brands. (Source: Fabian Berges, Daniel Hassan, and Sylvette Monier-Dilhan, "Are consumers more loyal to national brands than to private labels?" Bulletin of Economic Research, Vol. 65, 2013.)

Answer the following questions. Assume a 2% change in price.

1. Compare the elasticities of the demand for national brands vis-a-vis private labels of pasta. Does the difference make sense?

2. Do national brands or private labels or low-price brands command more brand loyalty? (Hint: Interpret brand loyalty by the own-price elasticity.)