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Suppose that you own a clothing store. You expect food prices to increase 20 percent due to the COVID-19 pandemic. If the cross-price elasticity
Suppose that you own a clothing store. You expect food prices to increase 20 percent due to the COVID-19 pandemic. If the cross-price elasticity of demand between food and clothing is -0.18, what will be the resulting impact on salles from your clothing store? O a. Sales will decrease by 0.9 percent. O b. Sales will decrease by 3.6 percent. Oc Sales will increase by 3.6 percent. Od. Sales will increase by 0.9 percent.
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