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Suppose the Price of a Increases by 10 Percent While

Question 319

Multiple Choice

Suppose the price of A increases by 10 percent while the quantity demanded of B does NOT change. We would conclude that


A) the two goods are substitutes, but the cross elasticity of demand is not large.
B) the two goods are complements, but the cross elasticity of demand is not large.
C) the two goods are perfect substitutes.
D) the two goods are not related.

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