If the Cross-Price Elasticity Between Ketchup and Hamburgers Is -2

question 70

Multiple Choice

If the cross-price elasticity between ketchup and hamburgers is -2.5, a 2% increase in the price of ketchup will lead to a

• A)5% drop in quantity demanded of ketchup.
• B)5% 5% drop in quantity demanded of hamburgers.
• C)5% increase in quantity demanded of ketchup.
• D)5% increase in demanded of hamburgers.