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The cross price elasticity between two products, L and M, is 0.40 (that is, the change...

  1. The cross price elasticity between two products, L and M, is 0.40 (that is, the change in demand for L with respect to the change in the price of M). If the price of M rises by 10 percent, by how much will the demand for L change?
  1. In question 4, are L and M substitutes or complements, and why?
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