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Taking the Absolute Value of the Cross-Price Elasticity of Demand

Question 144

Multiple Choice

Taking the absolute value of the cross-price elasticity of demand is incorrect because it would:


A) remove the ability to tell whether the two products have inelastic demand or elastic demand.
B) cause the value of the cross-price elasticity of demand to become smaller.
C) remove the ability to tell whether the two products are substitutes or complements.
D) cause the value of the cross-price elasticity of demand to become zero.

Correct Answer:

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