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When the Price of Bread Increases by 3 Percent, the Quantity

Question 41

Multiple Choice

When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:


A) 0.67.
B) 1.5.
C) 2.5.
D) 3.2.
E) 5.0.

Correct Answer:

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