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If,for Two Goods,the Cross-Price Elasticity of Demand Is 1

Question 354

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If,for two goods,the cross-price elasticity of demand is 1.25,then


A) the two goods are luxuries.
B) the two goods are substitutes.
C) one of the goods is normal and the other good is inferior.
D) the demand for one of the goods conforms to the law of demand,but the demand for the other good violates the law of demand.

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