Question: Fill in the blanks for the following statements:

1. If the price of Product A increases by 10% and the quantity demanded Product B decreases by 15%, the cross-elasticity of demand between A and B is _____________, and the two goods are _____________.
2. When the Price of Product C decreased from $15 to $9 per box, its production fell from 8 million to 6 million boxes per month. The price elasticity of supply for Product C is ___________.
3. Two new restaurants open in a small college town and increase the number of substitutes for the town’s only pizza restaurant; the students' new demand curve for pizza sold by the existing restaurant will be ______ elastic than the old one.
4. Taxicab fares in City D are subject to maximum price regulations set by the city government. Assume that the local taxi companies petition the city council to raise the fares because they believe higher fares will generate higher revenues but a local citizen action group opposes the fare increase and argues that any increase in fares will actually lower revenues earned by the taxi companies. You can conclude that the taxi companies believe the price elasticity of demand for taxis is __________ and the citizen action group believes the price elasticity of demand is ___________.
5. Company X decided to raise the price of its product from $2 to $2.50. The quantity it sold decreased from 100 to 90. The firm’s economist concluded that the price elasticity of demand for the product was ___________. Over time, however, Company X noted that the quantity sold continued to decrease. This is likely due to the fact that the long run price elasticity of demand for most products is ________ elastic than the short run price elasticity of demand.

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