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Part II. Short-Answer Questions 1. If a 3% increase in the price of corn flakes causes a 6% decline in the quantity demanded, what is

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Part II. Short-Answer Questions 1. If a 3% increase in the price of corn flakes causes a 6% decline in the quantity demanded, what is the elasticity of demand? 2. Suppose the demand curve for a product is given by Q = 10 - 2P + Ps, where P is the price of the product and PS is the price of a substitute good. The price of the substitute good is $2.00. Suppose P = $1.00. What is the price elasticity of demand? What is the cross-price elasticity of demand

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