For many consumers,bacon and eggs are complements.Therefore,egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is
A) negative, and a decrease in the price of bacon will decrease the demand for eggs.
B) positive, and a decrease in the price of bacon will increase the demand for eggs.
C) negative, and a decrease in the price of bacon will increase the demand for eggs.
D) positive, and an increase in the price of bacon will increase the demand for eggs.
Correct Answer:
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