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Answer to Question #112290 in Economics of Enterprise for dima hajj

Question #112290
The cross elasticity between oranges and pears is -0.78, then 2 goods are ?
1
Expert's answer
2020-04-27T07:49:42-0400

They are complementary goods.

The -0.78 cross elasticity means that as the price of one commodity (oranges) increases, the demand quantity for an associated commodity (pears) decreases.


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