The formula for cross-price elasticity is
A. The percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
B. The percentage change in the quantity demanded for one good divided by the percentage change in the price of another good.
C. The percentage change in the quantity demanded divided by the average change in price.
D. The percentage change in the quantity demanded for one good divided by the percentage change in income.
Answer: B
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One way the government can boost the economy out of a recession is:
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