Suppose Pump-U-Up lowers the price of its gym membership by 10 percent and as a result, Sweat-It-Out experienced a 16 percent decline in its gym membership.What is the value of the cross-price elasticity between the two gym memberships?
A) -1.6
B) -0.625
C) 0.625
D) 1.6
Correct Answer:
Verified
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