If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________.
Select ONE answer:
- 2/3, substitutes
- 3/2, substitutes
- 2/3, complements
- 3/2, complements
Show your workings to arrive at your answer, and explain and justify your reasons:
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This is multiple choice question is suitable for Economics KS5 classes.
The answer is 1
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