A 12 percent increase in the price of tea causes 3 percent increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is A -4. B 4. C -0.25 D 0.25
A 12 percent increase in the price of tea causes 3 percent increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is A -4. B 4. C -0.25 D 0.25
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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A 12 percent increase in the price of tea causes 3 percent increase in the demand for coffee. The cross
A -4.
B 4.
C -0.25
D 0.25
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