Multiple Choice
The cross-price elasticity between two products is estimated to be 2. If the price of the first product is increased by 8%, demand for the second product will _____.
A) increase by 8%
B) decrease by 4%
C) increase by 4%
D) increase by 16%
E) decrease by 8%
Correct Answer:
Verified
Correct Answer:
Verified
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