Back to Assignment Attempts Average / 1 5. Substitutes, complements, or unrelated? You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies. flopticles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 4%, the quantity of flopsicles sold decreases by 4% and the quantity or kipples sold increases by 3%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity between puppy oumenies and Popsicles, and the between Quppy yummies and kipples. In the second column, determine if puppy gummies are a complement to or a substitute for each of the good listed. Finally, complete the final column by indicating which good Complement mend marketing with guppy gummies. Relative to Guppy Gum Substitute Cross-Price Elasticity of Demand Jbstitute Recommend Marketing with Guppy Gummies Flopsicles Kipples Com Grade It Now Save & Continue Continue without saving Attempts Average/1 5. Substitutes, complements, or unrelated? You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, flopsicles, and kipples. All of these products have been on the market for some time, but to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 4%, the quantity of flopsicles sold decreases by 4% and the quantity of kipples sold increases by 3%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together. Yes Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and flopsicles, and then between guppy gummies and kipples. In the second column, determine if guppy gummies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by Indicating which good you should recommend marketing with suppo Relative to Guppy Gummies Cross-Price Elasticity of Demand Complement or substitute Recommend Mary! Jith Guppy Gummies Flopsicles Kipples No Grade It Now Save & Continue Continue without saving