Business, 04.03.2020 05:48, hosfordkenya4
Suppose the price of pepper increases by 20percent and, as aresult, the quantity of salt demanded (holding the price of salt constant) decreases by 2 percent
The cross-price elasticity of demand between pepper and salt is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)
In this example, pepper and salt are
Instead, suppose pepper and salt were substitutes.
If so, then the cross-price elasticity of demand between prepper and salt would be:.
1. Less than 1 but greater than 0
2. Negative
3. Greater than 1
4. Positive
5. Zero
Answers: 3
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Suppose the price of pepper increases by 20percent and, as aresult, the quantity of salt demanded (h...
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