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The price of good H goes up from $1 to $1.05. Subsequently the quantities of good G sold rise by 2%. Under the ceteris paribus
The price of good H goes up from $1 to $1.05. Subsequently the quantities of good G sold rise by 2%. Under the ceteris paribus assumption, what is the cross elasticity of demand for H?
Given these data would you characterize goods G and H substitutes or compliments? Why?
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