The demand for petrol rises from 500 to 600 Barrels when the price of a particular scooter is reduced from RM 2500 to RM 2200. Find out the cross elasticity of demand for the two. What is the nature of their relationship?(5 marks0

(b) A company has the following demand equation. Q = 1000 - 3000 P + 10 A Q = Quantity demanded P = Product Price A = Advertisement expenditure Assume that P = 3 and A = 2000 I Suppose the firm drops the price to RM 2.50 would this be beneficial. Ii Suppose the firm raises the price to RM 4.00 while increasing. Its advertisement expenditure by 100 would this be beneficial? Explain

(10 marks)