Tacos and Pizza Are Substitutes

question 337

Multiple Choice

Tacos and pizza are substitutes.If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza,the cross elasticity of demand equals

• A) -1/2.
• B) 1/2.
• C) 2.
• D) -2.
• E) 4.

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