Multiple Choice
The price of coffee rose 50 percent and coffee sales fell 25 percent.Doughnut sales also fell 25 percent.From this information, we can conclude that
A) demand for coffee is inelastic.
B) coffee and doughnuts are complements.
C) the cross elasticity of demand is minus 0.5 percent.
D) All of the responses are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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