a) The price of tea increased from $1.20 to $1.50 per box. The quantity of scones demanded changed from 10 units to 8 units. Calculate the cross elasticity of demand and comment on the relationship between the two goods.           b) If Joe’s income increases from $36,000 to $40,000 and the amount of donuts he consumes increases from 52 per year to 86, calculate the income elasticity of demand. What type of goods are donuts for Joe?

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