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When the Price of Erasers Increases from $1

Question 39

Multiple Choice

When the price of erasers increases from $1.50 to $2.50,the quantity demanded of pencils is unchanged.The cross-price elasticity of demand between erasers and pencils is ________ because erasers and pencils ________.


A) 1; are substitutes
B) 1/2; are complements
C) 0; are normal goods
D) 0; are unrelated
E) -1/2; are complements

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