Suppose the price of salt increases by 20 percent and, as a result, the quantity of...

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Suppose the price of salt increases by 20 percent and, as a result, the quantity of pepper demanded (holding the price of pep

business economics

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Answer 1

Answer #1

Cross price elasticity = percentage change in quantity demanded/percentage change in price

= 6/20

= 0.3

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Answer 2

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