When price of tea in local cafe rises from birr 10 to 15 per cup, demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices. a). Detemine cross price elasticity b). Based on the result, what kind of relation exists between the two goods?

When price of tea in local cafe rises from birr 10 to 15 per cup, demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices. a). Detemine cross price elasticity b). Based on the result, what kind of relation exists between the two goods?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 16SQ

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