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If the Price of One Good Increases by 3 Per

Question 29

Multiple Choice

If the price of one good increases by 3 per cent and the quantity demanded of another good increases by 2 per cent, the cross elasticity is _______ and the two goods are _______ .


A) 2/3, substitutes
B) 3/2, complements
C) 3/2, substitutes
D) 2/3, complements

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