Answered: The price of product A is cut by 30%.…

The price of product A is cut by 30%. As a result, the quantity demanded of product B rises by 40%. The cross-price elasticity of demand between product A and product B is and they are

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

The price of product A is cut by 30%. As a result, the quantity demanded of product B rises by 40%. The
cross-price elasticity of demand between product A and product B is
_, and they are
O -0.75; substitutes
O -1.33; complements
O -1.25; complements
O 1.25; complements

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