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Elasticity: Assume the following information: When the price of carrots increases 10%, consumers buy 15% fewer carrots. When the price of green beans falls 9%,
Elasticity: Assume the following information:
- When the price of carrots increases 10%, consumers buy 15% fewer carrots.
- When the price of green beans falls 9%, consumers buy 27% more green beans.
- When the price of carrots decreases 16%, consumers buy 8% more green beans.
- When income increases by 5%, consumers buy 4% more carrots and 6% more green beans.
Calculate the cross-price elasticity of demand for carrots and green beans.How are these products related to each other on the demand side?(Hint:you willnotneed to use all of the information provided.)
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