The cross-price elasticity of demand between american eagle and hollister is 2.0. what does

that coefficient tell us about the relationship between these two stores? i

Suggests that these are substitute goods

Explanation:

Demand cross elasticity measures the percentage change in the quantity demanded of a good given a percentage change in the price of another substitute good. Thus, the calculation of elasticity being 2, suggests that a percentage increase in the price of one store will increase the demand for products of the other store. In other words, a 1% increase in the price of one store will cause consumers to buy two units in the other store, replacing the store product whose price has increased.

there are conflicting perceptions. what cannot be denied is that despite a long history of discrimination, they finally chose to bow out in grace and handed over power to the majority. it was a painful experience for them to part with their prerogatives and some chose to leave the country. however, they did decide to bite the bullet and go through the process with minimum obstructions.

presently, whites are still a force to reckon with. they are well educated, have technical and business expertise, they understand imperatives of good governance and are responsible for keeping south africa connected with developed countries. despite a bitter history, they are useful team members of the south african team.