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The Cross Price Elasticity of Demand for Poultry with Respect

Question 194

Multiple Choice

The cross price elasticity of demand for poultry with respect to the price of ground beef has been estimated to be 0.23.If the price of ground beef falls by 20 percent in a period, how will that affect the demand for poultry in that period, all other things unchanged?


A) The demand for poultry will rise.
B) The demand for poultry will remain unchanged.
C) The demand for ground beef will increase, but the demand for poultry will fall.
D) The demand for ground beef will not change, but the demand for poultry will fall.

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