Multiple Choice
Suppose the cross-price elasticity between demand for Chipotle burritos and the price of Qdoba burritos is 0.8.If Qdoba increases the price of its burritos by 10%:
A) Chipotle will sell 10% more burritos.
B) Chipotle will sell 8% more burritos.
C) Chipotle will sell 8% fewer burritos.
D) We cannot tell what will happen to Chipotle,but Qdoba will sell 8% fewer burritos.
Correct Answer:
Verified
Correct Answer:
Verified
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