1. For the following three cases, use a midpoints formula to calculate the coefficient for the cross elasticity of demand and identify the type of relationship between the two products. SHOW calculations.
(a) The quantity demanded for product A increases from 30 to 40 as the price of product B increases from $0.10 to $0.20.
Coefficient: ______ Relationship: ________________
(b) The quantity demanded for product A decreases from 3000 to 1500 as the price of good B increases from $5 to $10.
Coefficient: ______ Relationship: ________________