Multiple Choice
Suppose the cross-price elasticity between demand for Burger King burgers and the price of McDonald's burgers is 0.8. If McDonald's increases the price of its burgers by 10%:
A) Burger King will sell 10% more burgers.
B) Burger King will sell 8% more burgers.
C) Burger King will sell 8% fewer burgers.
D) We cannot tell what will happen to Burger King, but McDonald's will sell 8% fewer burgers.
Correct Answer:
Verified
Correct Answer:
Verified
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