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Soloha48 [4]
3 years ago
5

If the price falls by 50% and the quantity demanded falls by 25%, find cross price elasticity of demand

Business
1 answer:
Rashid [163]3 years ago
6 0
Simply divide the percentage change in the quantity demand with the percentage change in price, giving you a positive value of 0.5. This shows that it is inelastic and the two goods are substitutes to each other.
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