A 2-percent increase in the price of peanut butter leads to a 7- percent increase in the quantity of almond butter demanded. It appears that: O cross-price elasticity of demand for almond butter is 3.5. O cross-price elasticity of demand for almond butter is -3.5. cross-price elasticity of demand for almond butter is -0.3. cross-price elasticity of demand for almond butter is 0.3.
A 2-percent increase in the price of peanut butter leads to a 7- percent increase in the quantity of almond butter demanded. It appears that: O cross-price elasticity of demand for almond butter is 3.5. O cross-price elasticity of demand for almond butter is -3.5. cross-price elasticity of demand for almond butter is -0.3. cross-price elasticity of demand for almond butter is 0.3.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...
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![A 2-percent increase in the price of peanut butter leads to a 7-
percent increase in the quantity of almond butter demanded. It
appears that:
cross-price elasticity of demand for almond butter is 3.5.
O cross-price elasticity of demand for almond butter is -3.5.
O cross-price elasticity of demand for almond butter is -0.3.
O cross-price elasticity of demand for almond butter is 0.3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf7465a1-1f06-4ade-b6d3-6ab1782d9bd3%2F29f4df8f-eb83-41c4-8319-3a7c9d69a977%2F89vxlzo_processed.png&w=3840&q=75)
Transcribed Image Text:A 2-percent increase in the price of peanut butter leads to a 7-
percent increase in the quantity of almond butter demanded. It
appears that:
cross-price elasticity of demand for almond butter is 3.5.
O cross-price elasticity of demand for almond butter is -3.5.
O cross-price elasticity of demand for almond butter is -0.3.
O cross-price elasticity of demand for almond butter is 0.3.
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