S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per case, and at the same time, th quantity of Kraft macaroni and cheese sold dropped from 198 to 132 cases. a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places. b) What is the relationship between the two products? They are (Click to select) (Click to select) substitutes permanents BH ►

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 7CQ
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S
Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per case, and at the same time, the
quantity of Kraft macaroni and cheese sold dropped from 198 to 132 cases.
a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places.
b) What is the relationship between the two products?
They are (Click to select)
(Click to select)
substitutes
permanents
A
1
+
Prev
2 of 8
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Transcribed Image Text:S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per case, and at the same time, the quantity of Kraft macaroni and cheese sold dropped from 198 to 132 cases. a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places. b) What is the relationship between the two products? They are (Click to select) (Click to select) substitutes permanents A 1 + Prev 2 of 8 3 Next >
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