Following your review of elasticity, will the elasticity of demand for Nissan sedans increase, decrease, or remain the same when each of the following events occurs? Explain your answer. i. Other car manufacturers, such as Honda, decide to make and sell sedans. ii. Sedans produced in foreign countries are banned from the European market. iii. Following increased advertisements, Americans believe that sedans are less safe than ordinary passenger cars. iv. In the long run, new sedan models are produced. b. Jordan usually pays a price between $14 and $20 per kilogram of sugar. His monthly total expenditure on sugar increases as the price decreases. What does this imply about her price elasticity of demand for sugar? c. Using the table below calculate the cross price elasticity of skirts. Are these goods substitute or complement? Briefly explain.

Price of Sandals Price of Skirts Quantity Demanded of sandals Quantity Demanded of Skirts $5 $4 60 100 $4 $2 80 70