Suppose that the cross price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.A 10 percent increase in the price of Coke would:
A) reduce the demand for Mountain Dew by 10 percent.
B) reduce the demand for Mountain Dew by 7 percent.
C) increase the demand for Mountain Dew by 7 percent.
D) increase the demand for Mountain Dew by 10 percent.
Correct Answer:
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