If the costs of one of the goods rise by some percent

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Reference no: EM1328152

Analyzing cross price elasticity of demand

Two goods have a cross price elasticity of +1.2.

a.Would you describe these goods as substitutes or complements?

b.If the price of one of the goods increases by 5 percent, what will happen to the demand for the other product, holding constant the effects of all other factors?

Reference no: EM1328152

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