When the Price of Pencils Increases from $1

question 164

Multiple Choice

When the price of pencils increases from $1.50 to $2.50,there is an increase in quantity demanded of pens from 100 to 150.The cross-price elasticity of demand between pencils and pens is

• A) 1.25.
• B) 0.50.
• C) 0.40.
• D) 0.80.
• E) 0.75.

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