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To solve this problem, let’s review the definition of cross-price elasticity of demand.

**Cross-Price Elasticity of Demand (XED)** measures the responsiveness of the quantity demanded of one good when the price of another good changes. The formula is:

\[
\text{Cross-Price Elasticity of Demand} = \frac{\%\ \text{change in quantity demanded of Product B}}{\%\ \text{change in price of Product A}}
\]

Given:
- A 20% increase in the price of Product A.
- A 10% decrease in the quantity demanded of Product A.
- No change in the quantity demanded of Product B.

Since the quantity demanded of Product B does not change, the numerator in our formula for cross-price elasticity is 0%. Therefore,

\[
\text{Cross-Price Elasticity of Demand} = \frac{0\%}{20\%} = 0
\]

### Answer:
The cross-price elasticity of demand between these goods is **0.0**.

### Relationship between these goods:
Since the cross-price elasticity is 0, it indicates that Product A and Product B are **independent goods** (they do not influence each other's demand).

Would you like further details, or do you have any questions?

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Here are five related questions for practice:
1. What would the cross-price elasticity be if a 20% price increase in Product A caused a 15% increase in demand for Product B?
2. How do we interpret a positive cross-price elasticity value?
3. If Product A and Product B were substitutes, what would the expected sign of the cross-price elasticity be?
4. How is cross-price elasticity of demand used in business pricing strategies?
5. Can two complementary goods have a zero cross-price elasticity?

**Tip:** Remember, if the cross-price elasticity is zero, it means there is no relationship between the two products in terms of demand changes.

If a 20% increase in the price of Product A causes a 10% decrease in its quantity demanded but no change in the quantity demanded of Product B, what is the cross-price elasticity between these goods? Round your answer to one decimal place. What is the relationship between these goods?

Learn how to calculate the cross-price elasticity of demand when a 20% price increase in Product A causes a 10% demand decrease with no effect on Product B's demand. Understand the concept of cross-price elasticity and identify relationships between goods, such as independent or complementary relationships. Suitable for Grades 11-12.

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