You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin pops, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.

Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin pops increases by 7%, the quantity of frizzles sold increases by 7% and the quantity of kipples sold decreases by 7%. Your job is to use the cross-price elasticity between penguin pops and the other goods to determine which goods your marketing firm should advertise together.

Relative to Penguin Pops	Recommend Marketing with Penguin Pops
Cross-Price Elasticity of Demand	Complement or Substitute
Frizzles
Kipples