need help in answering these two questions

1. Assume that a department store was selling a brand
of men’s dress shirt at $100.00 per shirt. At that price, the store sold
50 shirts in one week. Next week, the store declared a “sale – buy one
get one free”. As a result, sale of the dress shirt increased to 300 in
that week. Based on these information, calculate the price elasticity of
demand using the arc elasticity formula (p 70-71 of the textbook). What
does the coefficient of elasticity indicate?

3. Define cross-price elasticity of demand. Explain
how the sign of the coefficient of cross-price elasticity (positive or
negative) indicates if the two goods are substitute goods or

complementary goods.

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