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Answer to Question #222780 in Economics for Beau
Question #222780
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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