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When the Price of Hamburger Went from $3 to $4

Question 123

Multiple Choice

When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for buns (using the initial value formula) is


A) 1.4.
B) 0.5.
C) -0.5.
D) -1.4.

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