The cross-price elasticity between Gillette razors and a related good is -3.4.What happens to demand for the related good if the price of Gillette razors falls by 10 per cent?
A) The quantity demanded of the related good rises by 3.4 per cent.
B) The quantity demanded of the related good falls by 34 per cent.
C) The quantity demanded of the related good rises by 34 per cent.
D) The quantity demanded of the related good falls by 3.4 per cent.
Correct Answer:
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