Multiple Choice
Suppose the price of cereal rose by 25% and the quantity of milk sold decreased by 50%.We know that the:
A) cross-price elasticity between cereal and milk is -2.
B) cross-price elasticity between cereal and milk is -0.5.
C) price elasticity of demand for milk is 2.
D) cross-price elasticity of demand between cereal and milk is 2.
Correct Answer:
Verified
Correct Answer:
Verified
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