Elasticities Table 1. Estimated own price and cross-price elasticities of demand in the USA

Product	Own price elasticity	Cross-price elasticity with respect to the price of vegetables
Milk	-0.790	-0.033
Meat	-0.758	-0.095
Egg	-0.471	+0.026
Juice	-1.165	+0.037

Source: Bing-hwan Lin, Steven T. Yen, Diansheng Dong and David N. Smallwood, "Economic incentives for dietary improvement among food stamp recipients", Contemporary Economic Policy, Vol. 28, no. 4, October 2010, pp. 524-36.

Based on Table 1 above, fill in the blanks.

1. If the price of vegetables reduces by 20%, the quantity demanded of eggs decreases by a)0.52 or b)0.25"] %. (Hint: Use cross-price elasticity of demand concept)

2. If the milk price falls by 20% due to an oversupply of milk, the quantity demanded of milk would increase by a)15.80or b)0.0158"] %. (Hint: Use the price elasticity of demand concept)