Are a and b complements or substitutes


You are an associate of a company that gets sales of $40,000 per year from product A and $80,000 from product B. The own price elasticity for product A is -2.2 and the cross price elasticity of demand between product B and A is 1.7. How much will the firm's total revenue (from both products) change if you increase the price of A (and only A) by 2%. Are A and B complements or substitutes? Explain.

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Microeconomics: Are a and b complements or substitutes
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