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Suppose That When the Price of Good X Increases from $800

Question 299

Multiple Choice

Suppose that when the price of good X increases from $800 to $850,the quantity demanded of good Y increases from 65 to 70.Using the midpoint method,the cross price elasticity of demand is about


A) -1.2,and X and Y are complements.
B) -0.1,and X and Y are complements.
C) 0.1,and X and Y are substitutes.
D) 1.2,and X and Y are substitutes.

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