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03-04-2024
Business

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Suppose that when the price of root beer rises 10%, the quantity of pizza demanded falls 20%. This would mean that pizza and root beer are
a. compliments, with a cross elasticity of 0.5.
b. compliments, with a cross elasticity of 2.0.
c. substitutes, with a cross elasticity of 0.5.
d. substitutes, with a cross elasticity of 2.0.

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