Time Remaining 0 and with no change in the price of weel swe

Time Remaining 0 and with no change in the price of weel sweaters, the quantity of wool swecaters demanded increased by Ths Test: 1 Ths Question One winter ncenudly,the prise of lhrmne betng el increasod by 20 percent and the qumity denanuded dectcaseod by 2 percend, anl with sno chuange in the price of wel swealers, the qutiy f 10 perest What is the cross clasticity of demand foe wool swcaters with respect to the price of heme heating oil The cros elesticity of demand for wol swelers with respect to the price of home Sening oil is lkene bling oil and wind sweaters are because OA ulntitutes, the cross elastiscity of wool sweaters with nespect to the price of home heating oil is nepative O onphecnts, the cros claticily of woel swcaters wih respect to the price of be eating oil is gositine Oc comploments, the crns clasticity of wool wcaters with ropeot to the price of hoene beating oil is nepative OD substitates, the crns clasticity owo swcafers with respect te the price of home hating ei is ponitive Question Next Question

Solution

Cross price elasticity of demand = Percentage change in the demand for wool / Percentage change in the price for oil

Cross price elasticity of demand = 0.10 / 0.20

Cross price elasticity of demand for wool = 0.5

Wool and oil and substitutes .

The correct option is D