When price of tea in local café rises from 10 to 15 per cup demand for coffee rises from 3000 to 5000 cups a day despite no change in coffee prices Find cross price elasticity and based on the result what kind of relation exists between the two goods.
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Explanation:
In case that are two goods that are tea and coffee are substitutes to each other , In other words these are substitutes good that is if price of one good increase the demand and supply for energy is decrease. The cross price elasticity Will be positive.
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