Answer:
-18 splishy to flopsicle
3 splishy to cannies
It should do marketing for splishy and cannies.
Explanation:
↓P_splishy 1%
↓Q_flopsicles 18%
↑Q_cannies 3%
[tex]\frac{change \: quanty}{change \: price} = $cross-price elasticity[/tex]
-0.18/0.01 = -18 splishy to flopsicle
In this case a decrease in the price is respond by less quantity for the secodn product.
This means there is competition between products, when splishy decrease price, people decide to purcahse it instead if floopsicled.
0.03/0.01 = 3
The decrease in the price generate more quantity from cannied.
This represent a complementary relationship, because the price decrease, consumers purchase cannies with the diference or use part of the saving to purchase cannies.