According to the regression results, the key variable is price. The price of a minicomputer does seem to have some impact on the workstation’s sales (i.e., cross elasticity = .47) but the results indicate that the price of the PC as well as the competitor’s price does not appear to have much of an impact.
The results indicate that customers are extremely price sensitive. Therefore, the firm should be very careful about how it prices the product. If it also happens to be selling PCs and minicomputers, then the prices of these products do not seem to have much of an impact on the sales of its workstations. However, it is quite possible that a price reduction in workstations could have a substantial impact on the sales of PCs and minicomputers. However, the above regression results cannot tell us what this impact might be.