What is cross-price elasticity of socks with respect to shoe

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Reference no: EM131001938

Suppose that when the price of shoes increases by 5%, the quantity demanded for socks decreases by 10% and the quantity demanded of sandals increases by 4%.

a. What is the cross-price elasticity of socks with respect to shoes?

b. Are shoes and socks related goods? If so, how are they related and how do you know?

c. What is the cross-price elasticity of sandals with respect to shoes?

d. Are shoes and sandals related goods? If so, how are they related and how do you know?

Reference no: EM131001938

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