Taking the absolute value of the crossprice elasticity of demand is incorrect because it would:
remove the ability to tell whether the two products have inelastic demand or elastic demand. 

cause the value of the crossprice elasticity of demand to become smaller. 

remove the ability to tell whether the two products are substitutes or complements. 

cause the value of the crossprice elasticity of demand to become zero. 
The percent change in insulin demanded for any price change is zero. The demand curve for insulin is _____, and the price elasticity of demand is _____.
vertical; perfectly elastic 

vertical; perfectly inelastic 

horizontal; perfectly elastic 

horizontal; perfectly inelastic 
You are given some data for four different products — milk, eggs, beef, and orange juice. The absolute value of the price elasticity of demand for beef is 0.9. The absolute value of the price elasticity of demand for orange juice is 3.5. The cross price elasticity between eggs and milk is 1. Which product has the most inelastic demand?
milk 

eggs 

beef 

orange juice 
Ques 1 Part C remove the ability to tell whether the two products are substitutes or complements.
To tell if the products are substitutes or complements, we need to assess the sale or demand pattern of the 2 good. When sign is not available, the ability to understand this relationship gets hampered.
Ques 2 Part B vertical; perfectly inelastic
The perfectly inelastic good has a vertical line. The product does not respond much to changes in price
Ques 3 Part C Beef
Since the elasticity of beef is less than 1 when we see the absolute value of elasticity, we can say that beef is most inelastic
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