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When the Price of One Pen Is $1,the Number of Notebooks

Question 166

Multiple Choice

When the price of one pen is $1,the number of notebooks demanded is 50.When the price per pen increases to $5,the number of notebooks demanded decreases to 30.What is the cross-price elasticity of demand between the two goods using the arc elasticity method?


A) 0.1
B) −0.375
C) 3
D) −3

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