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Which Pair of Goods Is Likely to Have the Largest

Question 35

Multiple Choice

Which pair of goods is likely to have the largest positive cross-price elasticity?


A) Peanut butter and jelly
B) Butter and margarine
C) Ramen noodles and a Rolex watch
D) Cross-price elasticity is always negative, and simply reported in absolute value.

Correct Answer:

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