Multiple Choice
A 10 percent increase in the price of root beer causes a 5 percent increase in the quantity demanded of orange soda.This means that _____
A) root beer and orange soda are substitutes.
B) root beer and orange soda are complements.
C) the cross-price elasticity of demand is 1.
D) the cross-price elasticity of demand is equal to 2.
E) the cross-price elasticity of demand is equal to −2.
Correct Answer:
Verified
Correct Answer:
Verified
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