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The Formula for Cross-Price Elasticity Is

Question 64

Multiple Choice

The formula for cross-price elasticity is


A) The percentage change in the quantity demanded for one good divided by the percentage change in income.
B) The percentage change in the quantity demanded for one good divided by the percentage change in the price of another good.
C) The percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
D) The percentage change in the quantity demanded divided by the average change in price.

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