Answered: A 3.92 percent increase in the price of…

A 3.92 percent increase in the price of tea causes a 6.29 percent increase in the demand for coffee. The cross-price elasticity of demand for coffee with respect to the price of tea i

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 16PAE

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Question

A 3.92 percent increase in the price of tea causes a 6.29 percent increase in the demand for coffee. The cross-price elasticity of demand for coffee with respect to the price of tea is:

24.66

10.21

1.60

0.68

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