Vik and Fleet product trainer in the sports shoe market . for one of their main products they…

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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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