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For each statement below, tell whether the statement is valid or invalid, and give a short explanation of your answer. Remember that your explanation will
For each statement below, tell whether the statement is valid or invalid, and give a short explanation of your answer. Remember that your explanation will be related in some way to elasticity.
1. Coffee and tea should have a positive cross elasticity of demand.
2. Demand for Tide will be more elastic than demand for laundry detergents as a whole.
3. The government will prefer to put excise taxes on jewelry rather than on gasoline.
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