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Suppose the market demand functions for apples and bananas are respectively Qapple = 2500 - 300Papple + 200Pbanana and Qbanana = 7500 + 250Papple - 500Pbanana The current prices are given by Papple = $5.00 and Pbanana = $7.00. 1 1) What is the price elasticity (in absolute value) of Qapple(at Papple = $5.00 and Pbanana = $7.00)? A) EQapple: Papple = 0.600 B) EQapple Papple = 0.625 C) EQapple Papple = 0.650 D) EQapple Papple = 0.675 12) What is the cross elasticity EQbanana, Papple(at Papple = $5.00 and Pbanana = $7.00)? A) EQbanana Papple =-0.238 B) EQbanana: Papple =-0.350 C) EQbanana Papple = 0.238 D) EQbanana' Papple = 0.350

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