1. The neighborhood price eff ect states that brands priced closer together exhibit a greater cross-elasticity than brands priced farther apart. How would you use the SCAN*PRO model to test this hypothesis?
2. How would you use the SCAN*PRO model to determine which is larger:
¦ The effect of a 1 percent price cut for a national brand on sales of a generic brand.
¦ The effect of a 1 percent price cut for a generic brand on sales of a national brand.