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Question: Vik and Fleet product trainer in the sports shoe market for one of their main products they they have the following demand curves
Vik Pv =175 - 1.2Qv
Fleet pf = 125 - 0.8Qf
Where p is in£ and Q is in pairs per week
The firm are currently selling 80 and 75 pairs of thire products per week respectively
A. What are the current price elastic ties for the products
B. Assume that the VIK reduces its price and increase its sell to 90pairs and that this also cause a fall in Fleet's sales to 70 pairs per week that is the cross elasticity between the two products
C. Is the above price reduction by Vik to be recommended ? Explain your answer.
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