Question: Consider demand for Crest toothpaste.Toothbrushes are a complement for consumers.If we know that the cross price elasticity of demand equals -0.7 and price elasticity of

Consider demand for Crest toothpaste.Toothbrushes are a complement for consumers.If we know that the cross price elasticity of demand equals -0.7 and price elasticity of demand is 0.7, then we can conclude that a 10% decrease in the price of toothbrushes will cause a 7% increase in quantity demanded for toothpaste, and a 10% decrease in the price of toothpaste will cause a 7% increase in the quantity demanded for toothpaste.

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