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Suppose the cross-price elasticity of CVS aspirin and Bayer aspirin is 1.45. If Bayer aspirin cuts the price of its good by 50%, what will

Suppose the cross-price elasticity of CVS aspirin and Bayer aspirin is 1.45. If Bayer aspirin cuts the price of its good by 50%, what will happen to the demand for CVS aspirin (include a number)? Explain and show both markets graphically.


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The crossprice elasticity of demand of 145 between CVS aspirin and Bayer aspirin is positive indicating that the two goods are substitutes More so by being greater than one it implies that the crossel... blur-text-image

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