a. The arc cross-price elasticity of demand for commodity T with respect to changes in the price of commodity Z between:
I. Points A to B is:
"Ecp = \\frac{180-200} {10-8} \u00d7\\frac{10+8} {180+200} = -0.474."
II. Points C to D
"Ecp = \\frac{100-150} {15-13} \u00d7\\frac{15+13} {100+150} = -2.8."
b. So, the goods are complements.
c. The arc own price elasticity of demand for commodity Z between points C and D is:
"Ecp = \\frac{120-150} {15-13} \u00d7\\frac{15+13} {120+150} = -1.56."
So, the demand is elastic.
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