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a) Suppose that when the price of good A decreases from $10 to $6, the quantity demanded of good B decreases by 30%. What is
a) Suppose that when the price of good A decreases from $10 to $6, the quantity demanded of good B decreases by 30%. What is the cross-price elasticity?
b) Suppose Jill has a certain amount of money today. She can choose whether to spend it all today or whether to spend some and save the rest for next year. If she spent $5000 today and $4,400 in a year, and you know the interest rate was 10%, how much money did she have today? Briefly explain.
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