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Suppose the Cross-Price Elasticity Between Two Goods Is 1

Question 98

Multiple Choice

Suppose the cross-price elasticity between two goods is 1.5.If the price of one good increases by 10%,then the quantity demanded of the other good will:


A) decrease by 15%.
B) increase by 15%.
C) decrease by 1.5%.
D) increase by 1.5%.

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