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During the summer months, Bruces Market anticipates that the price of hot dogs will increase by 10% and the demand for hambu

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Answer #1

The cross price elasticity of demand between hamburgers and hot dogs = % change in quantity demanded of hamburgers/% change n price of hot dogs = 31%/10% = 3.1.

For this information, we can say that hamburgers and hot dogs are substitutes to each other.

Explanation: When two goods are substitutes, the cross price elasticity of the goods is positive.

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