A 10 percent decrease in the price of coffee leads to a 20 percent decrease in the quantity of tea demanded. What can we conclude from this information? The elasticity of demand for tea is 2 and is elastic. The cross-price elasticity of demand for tea is -2. The cross-price elasticity of demand for coffee is -0.5. The elasticity of demand for coffee is 0.5 and is inelastic.

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