A company notices that the cross-price elasticity between its product and a competitor's product is 1.2. What strategic decision might the company consider based on this information?

• A. Maintaining current prices as the products are complements.
• B. Discontinuing the product as it is unrelated to the competitor's product.
• C. Lowering prices to gain market share from the competitor.
• D. Raising prices to increase revenue.

Answer: (C)