Elasticity calculation  (a) When a local cinema increased its ticket prices from $20 to $24, there was a 30% decrease in sales for a nearby popcorn seller. Calculate the cross-price elasticity of demand and determine whether these products are complements or substitutes. ( Ec = %∆Qa / %∆Pb ). (d) Briefly explain what is meant by ‘elastic demand’ and ‘inelastic demand’. Provide an example for each.

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