a. Why do suppliers want to create more
b. When the
c. When the price of rice falls from $100 to $80, the quantity demanded of rice increases from 10 to 25, the quantity demanded of potatoes decreases from 20 to 15, and the quantity demanded of chicken increases from 18 to 35.
i. Calculate the cross elasticity of demand for potatoes with respect to rice.
ii. Calculate the cross elasticity of demand for chicken with respect to rice.
iii. Of what use are these two cross elasticities of demand to the owner of a
business that sells potatoes and chicken?
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