Suppose the Price of Video Games Falls from $40 to $20

question 50

Multiple Choice

Suppose the price of video games falls from $40 to $20 and as a result the quantity demanded of footballs falls from 40,000 to 10,000 per year.The value of the cross-price elasticity of demand is

• A)1.80.
• B)1.00.
• C)0.83.
• D)0.56.

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The composition of fixed and variable costs that a company incurs in the process of delivering goods and services.

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