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Answer to Question #221620 in Economics for Pabi
Question #221620
Suppose the cross-elasticity of demand between two products, A and B, is positive. If there is a fall in the cost of producing good B, the quantity demanded will
A. increase for both goods.
B. decrease for good A and increase for good B.
C. increase for good A and decrease for good B.
D. decrease for both goods.
Expert's answer
B. decrease for good A and increase for good B.
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