The Price of Apples at a Local Market Rises from $2.95

question 79

Multiple Choice

The price of apples at a local market rises from $2.95 to $3.05 per kilo, and as a result the quantity of oranges that households purchase increases from 3950 to 4050 kilos per week. The cross- price elasticity is

• A) - 1.33.
• B) - 0.75.
• C) 0.75.
• D) 1.33.
• E) 1.5.

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