The price elasticity of demand for can is 1.2. The price elasticity of demand for trucks is 1.5.
The cross elasticity of demand for trucks with respect to the price of a car is 0.5.
A. If the price of a car rises by 10 percent, the percentage change in the quantity demanded of can is a decrease percent.
B. If the price of a car rises by 10 percent, the percentage change in the quantity demanded of trucks is an increase of percent.

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?