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    This post calculates the increase in chocolate syrup sales.

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    A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase?

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    Solution Preview

    This would be set up by the following equation:

    Cross elasticity of ...

    Solution Summary

    The solution calculates the increase in chocolate syrup sales.