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Firm A faces a price elasticity of demand of -2.5 and a cross-price elasticity of demand with Firm B's product of 0.75. If Firm B

Firm A faces a price elasticity of demand of -2.5 and a cross-price elasticity of demand with Firm B's product of 0.75. If Firm B lowers its price by 10% and Firm A leaves its price unchanged, then the change in Firm A's quantity sold will be

a)

a rise of 15%

b)

a rise of 7.5%

c)

a decline of 15%

d)

a decline of 7.5%

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