Multiple Choice
If the price elasticity of demand is computed for two products and product A measures 0.79 and product B measures 1.6,then:
A) product A is more price elastic than product B.
B) the cross price elasticity of product B is less than that of the product A.
C) consumers are more sensitive to price changes in product B than in product A.
D) product B is more price inelastic than product A.
E) products A and B must be substitutes.
Correct Answer:
Verified
Correct Answer:
Verified
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