Multiple Choice
The cross elasticity of demand for good A with respect to the price of good B is -1.5.A 10 percent rise in the price of good B will lead to
A) an increase of 1.5 percent in the quantity of A demanded.
B) an increase of 15 percent in the quantity of A demanded.
C) a decrease of 15 percent in the quantity of A demanded.
D) an increase of 6.7 percent in the quantity of A demanded.
E) a decrease of 6.7 percent in the quantity of A demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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