Assume your demand for “Ipek su” water increases from 1 bottle to 3 when “Sirab su” increases the price per bottle from 18 azn to 25 azn. a) Calculate cross price elasticity of “Ipek su” water and comment on it. b) Based on your answer in a) comment whether the two goods are substitutes or complements. Assume when Sirab increases the price for a bottle of water from 18 to 25 anz, the demand for Sirab decreases from 2 bottles to 1 bottle. c) Is the demand for Sirab price elastic? d) How will the revenue of a company producing Sirab change?

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