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Calculate the cross elasticity of demand for donuts

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Reference no: EM132931958

Problem - Suppose that the price of donuts is 60.50 and the local donut shop serves 800 donuts per day. At the same donut shop, the price of coffee is increased from 10.75 to $1.25 per cup. No other changes have occurred and the number of donuts sold decreases to 600 per day. Calculate the cross elasticity of demand for donuts relative to the price of coffee.

Reference no: EM132931958

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