You work for a marketing firm that just landed a contract with Run of the Mills to help them promote 3 of their products: splashy splashiest, frizzles and mokies. 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 2 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 if the Mills provides your marketing team with the following data: when the price of splashy splashies decrease by 5%, the quantity of frizzles sold an increase by 4% and the quantity of mokies sold decreased by 6%. Your job is to use the cross price elasticity between splishy splashies and the other goods to determine which goods your marketing team should advertise together.

CROSS PRICE ELASTICITY OF DEMAND

FRIZZLES........?

Mokies.........?

COMPLEMENT OR SUBSTITUTE

FRIZZLES?

MOOKIES?

RECOMMEND MARKETING WITH SPLISHY SPLASHIES

FRIZZLES ...yes or no?

mookies ...yes or no?