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Commerce · Q442

Economics

Graduate and Post Graduate · Commerce · question 442

Q442

If college enrolments drop by 10% when textbook prices double; textbook and enrolments are . . . . . . . ., goods and their cross-price elasticity is . . . . . . . .

A.
Complementary; -0.5
B.
Substitutes; 5
C.
Complementary; -0.1
Answer
D.
Substitutes; 0.5

Answer: Option C

Solution

Answer: Option C
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