Firm a Producing One Good Acquires Another Firm B Producing

question 1

Multiple Choice

Firm A producing one good acquires another firm B producing another good.The cross price elasticity of demand for the goods owned by each firm is 2.6.Holding other things constant,the acquiring firm should

• A)Raise prices on both goods
• B)Lower prices on both goods
• C)Raise price on the acquired good only
• D)Need more information