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When Two Goods Are Substitutes for Each Other,what Will the Cross-Price

Question 66

Multiple Choice

When two goods are substitutes for each other,what will the cross-price elasticity be?


A) The cross-price elasticity will initially be positive but eventually become negative.
B) It is unaffected by goods being substitutes.
C) It will be zero.
D) It will be positive.
E) It will be negative.

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