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If the Cross-Price Elasticity of Demand Between Two Goods Is

Question 37

Multiple Choice

If the cross-price elasticity of demand between two goods is 0,


A) a price change for one good will be exactly offset by a price change for the other
B) neither demand curve would shift following a change in the price of one of the goods
C) there is no income effect between the two goods
D) the demand for each good is price inelastic
E) the demand for each good is price elastic

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