Zhu spends exactly $50 on coffee each month. The price of tea decrease, while the price of coffee remains the same. Zhu's cross price elasticity of demand of coffee with respect to tea is a. 0 b. negative C. above 0 and below 1 d. positive

Zhu spends exactly $50 on coffee each month. The price of tea decrease, while the price of coffee remains the same. Zhu's cross price elasticity of demand of coffee with respect to tea is a. 0 b. negative C. above 0 and below 1 d. positive

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Zhu spends exactly $50 on coffee each month. The price of tea decrease, while the price of
coffee remains the same. Zhu's cross price elasticity of demand of coffee with respect to tea
is
a. 0
b. negative
C. above 0 and below 1
d. positive

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