Multiple Choice
A 10 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of soda demanded. What can we conclude from this information?
A) The elasticity of demand for soda is 3.
B) The elasticity of demand for potato chips is 3.
C) The cross-price elasticity of demand for soda is -3.
D) The cross-price elasticity of demand for potato chips is -3.
Correct Answer:
Verified
Correct Answer:
Verified
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