Let's say 2 goods exist: A for 10 and B for 20 (B is more premium in this example)
If I decrease the price of both goods by 10% and ask:
"Do you prefer A for 9 or B for 18 "
What sort of insights (elasticities, etc.) would I be able to get from this? I figure the usual arc elasticity is not possible for this, since the units are discrete.
Is it also possible to get other insights if I lower the price of the premium product more than the cheap product? i.e.:
"Do you prefer A for 9 or B for 17?"
Or even lower the price of the cheap product more than the premium, i.e,
"Do you prefer A for 8 or B for 18?"
I'm thinking about any insights that I can get from asking these sorts of questions, but the traditional equations of elasticity don't seem to apply.