When the Price of Hamburger Went from $3 to $4

question 192

Multiple Choice

When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for hamburger (using the initial value formula) is

• A) 1.4.
• B) 0.6.
• C) -0.6.
• D) There is not enough information to answer this question.

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