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Question
When the price of pencils increases from $1.50 to $2.50, there is an increase in quantity demanded of pens from 100 to 150. The cross-price elasticity of demand between pencils and pens is
a. 1.25.
b. 0.50.
c. 0.40.
d. 0.80.
e. 0.75.
Answer
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