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If the Price of Cereal Changes by 10 Percent,we Observe

Question 130

Multiple Choice

If the price of cereal changes by 10 percent,we observe a 2 percent change in the quantity of milk demanded.The cross-price elasticity of these goods is:


A) 5.
B) -5.
C) 0.2.
D) -0.2.

Correct Answer:

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