How the change in the price of one good

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The cross elasticity between two goods has been measured at -1.2. How are the goods related? Explain. Give an example of goods for which this might be a reasonable measure of cross elasticity. Using a S & D model for each of the two goods in the example you gave, show how the change in the price of one good (an increase in Supply changes the price of the first good), will affect the market for the related good or second good.

Reference no: EM131991765

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