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Suppose the cross-price elasticity of demand between hot dogs and mustard is -2.00. This implies that a 20 percent increase in the price of hot
Suppose the cross-price elasticity of demand between hot dogs and mustard is -2.00. This implies that a 20 percent increase in the price of hot dogs will cause the quantity of mustard purchased to Hint: CPE = First think about what kind of goods hot dogs and mustard are since their cross-price elasticity is negative. Based on that, you should be able to think about whether mustard consumption is increasing or decreasing given the increase in price of hot dogs
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