The quantity demanded of product A has increased by 12% in response to a 15% increase...
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The quantity demanded of product A has increased by 12% in response to a 15% increase in price of product B. Calculate the cross elasticity of demand and tell whether the product pair is (i) apples and oranges, or (ii) cars and petrol. (3 marks) The quantity demanded of product A has increased by 12% in response to a 15% increase in price of product B. Calculate the cross elasticity of demand and tell whether the product pair is (i) apples and oranges, or (ii) cars and petrol. (3 marks)
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