Multiple Choice
A 10 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of soda demanded. It appears that:
A) elasticity of demand for potato chips is 3.
B) cross-price elasticity of demand for soda is -3.
C) elasticity of demand for potato chips is -3.
D) elasticity of demand for soda 3.
Correct Answer:
Verified
Correct Answer:
Verified
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