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What direction demand for dunkin donuts glazed doughnuts

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N is the price elasticity of demand for Dunkin Donuts (DD) glazed doughnuts. Nxy1 is the cross elasticity of demand between DD glazed and Krispy Kreme (KK) glazed doughnuts. Nxy2 is the cross elasiticy of demand between DD glazed doughnuts and DD French Vanilla coffee, and n1 is the income elasticity of DD glazed doughnuts.

Question 1: Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?

Reference no: EM132540690

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