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Answer to Question #95905 in Microeconomics for SHAHADAT HOSSEN

Question #95905
Suppose, the cross elasticity of demand for beef with respect to chicken is E=
+1.5. (i) If price of chicken is increased by 40%, what will happen to the demand for beef?
(ii) What kind of relationship exists between beef and chicken in this case?
1
Expert's answer
2019-10-07T10:21:19-0400

the demand for beef will increase due to increase in the price of chicken and the relationship between beef and chicken is that both are close substitutes to each other


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