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Business

Economics

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Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

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Considering that hotel users also visit shopping malls and food courts, a professor estimates that in January 2022 there can be upto 18% increase in the price of UAE hotels which will automatically result in a decrease of Dubai gift shopping by 24 percent. Calculate the cross-price elasticity of demand for the projected demand in January 2022 and indicate how the two goods are related.

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