Posted by Will on Tuesday, November 29, 2011 at 12:03pm.
Sandra purchases 5 pounds of coffee and 10 gallons of milk per month when the price of coffee is $10 per pound. She purchases 6 pounds of coffee and 12 gallons of milk per month when the price of coffee is $8 per pound. Sandraâ€™s crossprice elasticity of demand for coffee and milk is
A. 0.82, and they are substitutes.
B. 0.82, and they are complements.
C. 1.22, and they are substitutes.
D. 1.22, and they are complements.

Economics  Gavin, Tuesday, November 29, 2011 at 8:20pm
B
Crossprice elasticity of demand =
Percentage change in quantity demanded of good 1 / Percentage change in the price of good 2
I did the work and that's what I got.

Economics  charisse, Saturday, December 12, 2015 at 3:32am
0.82, and they are complements.
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