A 10 percent increase in the price of tea causes 8 percent increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is
A)-1.25.
B)1.25.
C)-0.8.
D)0.8.

Question

Quizplus · Accepted Answer

The Answer of A 10 percent increase in the price of tea causes 8 percent increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is
A)-1.25.
B)1.25.
C)-0.8.
D)0.8.

A 10 Percent Increase in the Price of Tea Causes