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As the price of pizza falls by 10%, the quantity of burgers decreases by 15%. Calculate the cross-price elasticity of demand between pizza and Are pizza and burgers substitutes or complements?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following could have caused the price elasticity of demand to change from a value of -0.5 to -0.8? Question 20 options: 1) The increase in substitutes good available. 2) A rise in the price of substitute good. 3) A rise in demand for the good. 4) A rise in income. Next Page
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As the price of pizza falls by 10%, the quantity of burgers decreases by 15%. Calculate the cross-price elasticity of demand between pizza and burgers.