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If the Cross-Price Elasticity of Demand Between Goods X and Y

Question 15

Multiple Choice

If the cross-price elasticity of demand between goods X and Y is 2.4 this means:


A) the two goods are complements and demand is elastic
B) the two goods are complements and the demand is inelastic
C) the two goods are substitutes and the demand is elastic
D) the two goods are substitutes and the demand is inelastic

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