A Local Bakery Gives Information on Consumer Purchasing Habits for Muffins

Multiple Choice

A local bakery gives information on consumer purchasing habits for muffins and cupcakes.It says that when the price of a muffin is $1,people buy 55 cupcakes.When the price of a muffin is raised to $2,cupcake purchases go up to 65 cupcakes.The cross-price elasticity of demand is

A) 0.50.
B) 0.25.
C) 0.67.
D) 2.00.
E) 4.00.