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If a Cross-Elasticity with Respect to Price Is Positive Then

Question 25

Multiple Choice

If a cross-elasticity with respect to price is positive then:


A) a product's sales increase when another product's price drops.
B) a product's sales decline when another product's price drops.
C) a product's sales decline when another product's price increases.
D) a product's sales are independent of another product's price.

Correct Answer:

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