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A 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It appears that: OAA 10 percent increase in the price of soda leads to a 20 percent increase
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16 votes
16 votes
A 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It appears

that:
OAA 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It
appears that:
B. elasticity of demand for iced tea is 2 and is elastic.
C. cross-price elasticity of demand for soda is -0.5.
D. cross-price elasticity of demand for iced tea is -2.

User Slindberg
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1 Answer

20 votes
20 votes

Answer:

D. cross-price elasticity of demand for iced tea is -2.

Step-by-step explanation:

User Crmepham
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