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Elasticities Table 1. Estimated own price and cross-price elasticities of demand in the USA Product Cross-price elasticity with respect to the price Own price elasticity

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Elasticities Table 1. Estimated own price and cross-price elasticities of demand in the USA Product Cross-price elasticity with respect to the price Own price elasticity of vegetables Milk -0.790 -0.033 Meat -0.758 -0.095 Egg -0.471 +0.026 Juice -1.165 +0.037 Source: Bing-hwan Lin. Steven T. Yen, Diansheng Dong and David N. Smallwood, "Economic incentives for dietary improvement among food stamp recipients", Contemporary Economic Policy, Vol. 28, no. 4, October 2010, pp. 524-36. Based on Table 1 above, fill in the blanks. 1. If the price of vegetables reduces by 20%, the quantity demanded of eggs decreases by [ Select ] %. (Hint: Use cross-price elasticity of demand concept) 2. If the milk price falls by 20% due to an oversupply of milk, the quantity demanded of milk would increase by [ Select ] V (Hint: Use the price elasticity of demand concept)

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