Multiple Choice
Suppose that when the price of good X increases from $600 to $720, the quantity demanded of good Y decreases from 67 to 15. Using the midpoint method, the cross-price elasticity of demand is about
A) 6.98, and X and Y are substitutes.
B) -0.14, and X and Y are complements.
C) 0.14, and X and Y are substitutes.
D) -6.98, and X and Y are complements.
Correct Answer:
Verified
Correct Answer:
Verified
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