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If the Cross-Price Elasticity of Demand Between Good a and Good

Question 103

Multiple Choice

If the cross-price elasticity of demand between Good A and Good B is 2 and the percentage change in price of Good A is 5%, what is the percentage change in quantity demanded of Good B?


A) 3%
B) 10%
C) -1.25%
D) 1.50%
E) -3%

Correct Answer:

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