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21 August, 10:45

Suppose the price of pepperpepper increases by 1010 percent and, as a result, the quantity of saltsalt demanded (holding the price of saltsalt constant) increasesincreases by 55 percent. the cross-price elasticity of demand between pepperpepper and saltsalt is nothing. (enter your response rounded to two decimal places and include a minus sign if appropriate.) in this example, pepperpepper and saltsalt are ▼ substitutessubstitutes complementscomplements not relatednot related. instead, suppose pepperpepper and saltsalt were complementscomplements. if so, then the cross-price elasticity of demand between pepperpepper and saltsalt would be

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  1. 21 August, 13:47
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    The cross-price elasticity of demand between salt and pepper is - 0.50 In this example salt and pepper are Complements. Instead, suppose salt and pepper were substitutes. If so, the the cross-price elasticity of demand between salt and peeper would be positive.
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