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Own-Price Changes X1(p1,p2,y)=X2(P1,p2,y)= y p1+p2 With p2 and y fixed higher p, causes smaller x,*and x2 Asp1→>0,X1=X2→ AsP1→>∞,X1=X2->0Own-Price Changes x p p y x p p y y p p 1 1 2 2 1 2 1 2 * * ( , , ) = ( , , ) = . + With p2 and y fixed, higher p1 causes smaller x1 * and x2 *. p x x y p 1 1 2 2 → 0, = → . * * As p1 → , x1 = x2 → 0. * * As
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