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If Cola and Iced Tea Are Good Substitutes for Consumers

Question 14

Multiple Choice

If cola and iced tea are good substitutes for consumers, what can we conclude about their elasticity from this information?


A) Their cross-price elasticities are greater than zero.
B) Their income elasticities are less than zero.
C) Their price elasticities of supply are less than one.
D) Their price elasticities of demand are less than one.

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