Rowena consumes 10% more liquid ink pens when the price of mechanical pencils increases by 25%. For Rowena, liquid ink pens and mechanical pencils and the cross-price elasticity of demand is are O complements; 0.4 O substitutes; 0.4 O substitutes; -2.5 O complements, 2.5
Rowena consumes 10% more liquid ink pens when the price of mechanical pencils increases by 25%. For Rowena, liquid ink pens and mechanical pencils and the cross-price elasticity of demand is are O complements; 0.4 O substitutes; 0.4 O substitutes; -2.5 O complements, 2.5
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Rowena consumes 10% more liquid ink pens when the price of mechanical pencils increases by 25%. For Rowena, liquid ink pens and mechanical pencils
and the cross-price elasticity of demand is
are
complements; 0.4
O substitutes; 0.4
substitutes; -2.5
complements; 2.5
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