question archive When the price of sausages is $2

When the price of sausages is $2

Subject:EconomicsPrice:2.88 Bought3

When the price of sausages is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of sausages rises to $4.00 per pound, 60 pounds of hamburger are purchased. The cross-price elasticity of demand between sausages and hamburger is approximately equal to:

a) +2.20.

b) +0.27.

c) -0.45.

d) +0.45.

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