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If the price of beer rises from $1 to $1.50 per glass, and the consumption of wine rises from two to three glasses per evening, what can we say about the cross elasticity of demand between beer and wine? Are these two commodities complements or substitutes on this measurement? What would you expect be the value of the cross elasticity of demand between beer and "beer-peanuts"? Why do we say that if the sign of the cross elasticity of demand is Negative, the goods in question are Complements?

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