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Question
Refer to the accompanying table to answer the following questions.
| Price of Erasers | Quantity Demanded of Erasers | Quantity Demanded of Pencils |
| $.50 | 10 | 12 |
| $1.00 | 8 | 11 |
| $1.50 | 7 | 10 |
| $2.00 | 6 | 9 |
| $2.50 | 5 | 8 |
The price of erasers increases from $0.50 to $1.00 per eraser. Using the midpoint method, what is the cross-price elasticity of demand between pencils and erasers?
a. - 0.13
b. 7.67
c. -7.67
d. 0.13
e. -3
Answer
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