Rising world wholesale fair-trade prices force the local Dunkin' Donuts franchise to raise its price of coffee from 89 cents to 99 cents a cup. As a result, management notices that donut sales fall from 950 to 850 a day. Shortly after the coffee price spike, the local Cinnabon franchise reduced its price on cinnamon rolls from $1.89 to $1.69. This resulted in a further decline in Dunkin' Donuts donut sales to 750 a day. What is the cross price elasticity of demand for coffee and donuts? Are these two products complements or substitutes? What is the cross price elasticity of demand for Dunkin' Donuts donuts and Cinnabon cinnamon rolls? Are these two products complements or substitutes?

Rising world wholesale fair-trade prices force the local Dunkin' Donuts franchise to raise its price of coffee from 89 cents to 99 cents a cup. As a result, management notices that donut sales fall from 950 to 850 a day. Shortly after the coffee price spike, the local Cinnabon franchise reduced its price on cinnamon rolls from $1.89 to $1.69. This resulted in a further decline in Dunkin' Donuts donut sales to 750 a day. What is the cross price elasticity of demand for coffee and donuts? Are these two products complements or substitutes? What is the cross price elasticity of demand for Dunkin' Donuts donuts and Cinnabon cinnamon rolls? Are these two products complements or substitutes?

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Week 6 Lab 2 delta change loop (1) - Word
rout
References
Mailings
Review
View
Help
Tell me what you want to do
Aa E-E-'E-
AaBbCcDc AaBbCcDc AaBbC AaBbCcl AaB Aa
y- A-
1 Normal
1 No Spac. Heading 1
Heading 2
Title
Paragraph
Styles
Rising world wholesale fair-trade prices force the local Dunkin' Donuts franchise to raise its price of
coffee from 89 cents to 99 cents a cup. As a result, management notices that donut sales fall from
950 to 850 a day. Shortly after the coffee price spike, the local Cinnabon franchise reduced its price
on cinnamon rolls from $1.89 to $1.69. This resulted in a further decline in Dunkin' Donuts donut
sales to 750 a day.
I
What is the cross price elasticity of demand for coffee and donuts? Are these two products
complements or substitutes?
What is the cross price elasticity of demand for Dunkin' Donuts donuts and Cinnabon cinnamon
rolls? Are these two products complements or substitutes?

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