Suppose that the price elasticity of demand for pears is, Ask an Expert

Economics

Suppose that the price elasticity of demand for pears is -2.0 and the cross elasticity of demand for pears and apples is +0.7. Suppose that labor disputes in Washington cause the price of apples to increase. Which of the following should one expect?

Pear prices to decrease, quantity of pears sold to decrease.

Pear prices to increase, quantity of pears sold to decrease.

Pear prices to decrease, quantity of pears sold to increase.

Pear prices to increase, quantity of pears sold to increase.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91722015

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