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We would expect the cross-price elasticity of demand between coffee and ________.

User Domenick
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Final answer:

The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. For substitute goods like coffee and tea, a higher price for tea would lead to a greater quantity of coffee consumed.

Step-by-step explanation:

The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. For substitute goods like coffee and tea, a higher price for tea would lead to a greater quantity of coffee consumed. So, in this case, we would expect a positive cross-price elasticity of demand between coffee and tea.

User Raymond Chenon
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