Multiple Choice
The price of product A is cut by 30%. As a result, the quantity demanded of product B rises by 40%. The cross-price elasticity of demand between product A and product B is _____, and they are _____.
A) -0.75; substitutes
B) -1.25; complements
C) -1.33; complements
D) 1.25; complements
Correct Answer:
Verified
Correct Answer:
Verified
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