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. Sandra’s cross-price 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.

2 answers

B
Cross-price 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.
-0.82, and they are complements.
Similar Questions
  1. Table 24-3The following table lists the per gallon prices of gas and milk for the months of April, May, and June. Assume that
    1. answers icon 1 answer
  2. Question #4The food bank is buying gallons of milk. The function f(x) = 3x represents the number of gallons of milk needed for x
    1. answers icon 1 answer
  3. In nine months, 55.6 gallons were used. Find the unit rate.(1 point)Responses 9.27 gallons/month 9.27 gallons/month 12.36
    1. answers icon 1 answer
  4. orA car repair shop offers its customers free coffee while they wait. By the end of the day, the coffee urn, which had started
    1. answers icon 3 answers
more similar questions