If the cross elasticity of demand between beef and bison is 1.5, then a 3 percent increase in the price of beef will lead to
A) a 4.5 percent increase in the quantity of bison demanded.
B) a 4.5 percent decrease in the quantity of bison demanded.
C) a 2 percent increase in the quantity of bison demanded.
D) a 2 percent decrease in the quantity of bison demanded.
E) a 0.5 percent increase in the quantity of bison demanded.
Correct Answer:
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