Let's pretend that the company that owns the vending machines at Delta College suddenly cut all candy price to .50 cents. That's right - Snickers, Milky Way, Rocky Road, Junior Mint candies are now just .50 cents - Wow! Let's assume this is a price cut of 50 percent or .50 .

Now let's assume the Delta College bookstore that normally sells candy at a higher price suffers a 75 percent drop or .75 decrease in the quantity of their candy sales.

Conclusion: What is the cross-price elasticity for this situation?

% Change in Quantity of Product X - Delta Bookstore Candy

% Change in Price of Product Y - Vending Machine Candy = Cross Price Elasticity

A..60

B.1.50

C.1.00

Impossible to calculate with such limited information