Using the midpoint rule-cross price elasticity of demand

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When the price of good A is $20, the quantity of good B purchased is 400. When the price of good A is $40, the quantity of good B purchased is 750. Using the midpoint rule, the cross price elasticity of demand between goods A and B is

(a) -0.91 and the goods are complements

(b) 0.91 and the goods are substitutes

(d) -2.20 and the goods are complements

Reference no: EM131081851

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