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There is nonewdenandarvetodraw it is thesame as the first fundion It remains thesame This is because theincreaseinthe price of pears by $1 is proportionateto thedecrease

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There is nonewdenandarvetodraw it is thesame as the first fundion It remains thesame This is because theincreaseinthe price of pears by $1 is proportionateto thedecrease inJem/sincome by $2 andtherefore thedanandof apples inrelation toincomeis unchanged d Moport fomla Pricedasticity of demandfar apples=2-Q1 P2+P1 P2P1 -Q2Q1 2321 2+1 2-1 2321 =0.13balowpricelasticdemand Apples and Pears aresubstitutes because as theprice of the pear increased from$1to$2, thequantity derranddadfor apples increased As this is a positive veluewecancondude thatwhenquantity of apples

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