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cross price elasticities

I am trying to determine own company and cross price elasticities.

Here are my numbers:

Own company:
demand starts at 80 units, increases to 96
price starts at $1.33/unit and decreases to .97

Other company:
demand starts at 80 units, increases to 96
price starts at 1.49 and decreases to 1.10

Thank you.

Solution Preview

First of all we need to analyze the price elasticity of demand for our own company. The price elasticity of demand measures the proportion of change in demand to the change in price. Thus it shows the responsiveness of demand to the price.

? If price elasticity of demand is bigger then 1 then demand is price elastic (demand is sensitive to price changes
? If price elasticity of demand is equal to 1 then demand is unit elastic
? If price elasticity of ...

Solution Summary

This posting helps to determine own company and cross price elasticities.

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