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Question
When the price of chicken is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of chicken rises to $3.00 per pound, 60 pounds of hamburger are purchased. The cross price elasticity of demand between chicken and hamburger is approximately equal to
A) +0.04.
B) -0.45.
C) +2.20.
D) +0.45.
Answer
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