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You are considering using good G as a loss leader (i.e. dramatically reducing its price to drive buyers to your business) You should select a

You are considering using good G as a "loss leader" (i.e. dramatically reducing its price to

drive buyers to your business)

You should select a good G that has:

1. a high/low (pick one) own-price elasticity of demand. Explain

2. a high/low (pick one) cross elasticity with its complements that you, also, sell. Explain

3. a high/low (pick one) cross elasticity with its substitutes that you, also, sell. Explain

4. Offer an example of a "good G" and explain why it is a good choice based upon 1., 2., and 3.

above.

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