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Consumers Who Buy Luxury Cars Seldom Pay Much Attention to the Prices

Question 147

Multiple Choice

Consumers who buy luxury cars seldom pay much attention to the prices of economy cars.Which of the following is the most likely cross-price elasticity of demand for a low-price Ford Focus with respect to a relatively more expensive BMW?


A) 0.001.
B) 3.001.
C) -0.001.
D) -3.001.
E) -6.001.

Correct Answer:

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