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Cross price elasticity of demand between pepper and salt

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Reference no: EM131376595

Suppose price of pepper increases by 25% and as result quantity of salt increases by 4 %.

What is the cross-price elasticity demand between pepper and salt = ____

In this example, pepper and salt are ________ (complements or substitutes)

If complements, the cross price elasticity of demand between pepper and salt will be

a) negative

b) positive

c) less than 1

d) zero

e) greater than -1

Reference no: EM131376595

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