Your company

Ahas a long history of rivalry with companiesBandC. The cross price elasticities are()=1.2

E(AB)=1.2and()=0.3

E(AC)=0.3. You should conclude that

Select one:

a.B is a competitor since its cross-price is greater than one, but C is a complementary product since its cross-price is less than one.

b.C is more of a competitor than B since its buyers have less elastic demand.

c.there is no relationship between A and C since the cross-price is less than one.

d.both could be considered competitors, but B is more of a competitor than C.