Question: (1) Suppose the price of apples goes up from $20 to $22 a box. Consumers' demand for apples went from 1000 to 800 boxes.

(a) Compute the Coefficient of price elasticity of demand using the midpoints approach.

(b) Is thedemand for the apples elastic, inelastic, or unit elastic?

Question (2) Suppose the price of product X went from $3 per pound to $4.50 per pound in a period and the quantity of product Y demanded in that same period went from 3000 pounds to 2500 units.

(a) Calculate the Coefficient of cross-price elasticity of demand between products X and Y.

(b) From your answer in part (a) of this question, are the two products substitutes for each other, complements, or independent?