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Last week, Super-Save Supermarket sold 150 pounds of bananas at 1 dollar a pound and this week it sold 120 pounds of bananas at .90
Last week, Super-Save Supermarket sold 150 pounds of bananas at 1 dollar a pound and this week it sold 120 pounds of bananas at .90 cents per pound. They lowered the price of bananas from $1 to 90 cents per pound.
Are bananas and apples complements or substitutes?
What is the cross elasticity of demand?
Explain your answer to include the following:
Calculate price, income, and cross elasticity of demand
Be sure to reference at least one scholarly source to support your answer.
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