Sunday, January 3, 2010

Two-Minute Drill -- Complementary Goods


Summary: Find the cross elasticity coefficient.


The answer is -.4% which means that pork is a substitute for beef.







About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

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