A cross price elasticity of demand for product with respect to the price of product of 0.3 means that an increase in the price of B by 10 percent gives rise to an increase in the quantity demanded of A by 3 percent.

Question

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A cross price elasticity of demand of 0.3 means that a 10 percent increase in the price of B is associated with a 3 percent increase in the quantity demanded of A, as the two products are somewhat related.

A Cross Price Elasticity of Demand for Product with Respect