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A 20 percent rise in the price of Good S results in the following: GOOD Percentage change in quantity demanded T Increase by 50% U

A 20 percent rise in the price of Good S results in the following:

GOOD Percentage change in quantity demanded
T Increase by 50%
U Decrease by 30%
V Remains the same

  1. Calculate cross elasticity of demand between Good S and
  2. Good T

Cross elascity between Good S and Good T= % change in T / % change in S

  1. Good U
  2. Good V
  3. Name the relationships between good S and each of the other goods.

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