Multiple Choice
If a 1 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:
A) products A and B are complementary.
B) the cross elasticity of demand between these two products is positive.
C) products A and B are substitutes.
D) the demand for these products is inelastic.
E) the total revenue earned from product A will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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