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    Principles of Economics Study Set 12
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    Exam 4: Subtleties of the Supply and Demand Model
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    Because Tea and Coffee Are Substitutes, Their Cross-Price Elasticity Must
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Because Tea and Coffee Are Substitutes, Their Cross-Price Elasticity Must

Question 116

Question 116

Multiple Choice

Because tea and coffee are substitutes, their cross-price elasticity must be


A) less than 1.
B) less than 0.
C) equal to 0.
D) positive.
E) infinity.

Correct Answer:

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