If the cross price elasticity of demand for Pepsi with respect to the price of Coca Cola is -0.64, then (please choose all the answers that are correct)     Pepsi is a substitute for Coca Cola.     Pepsi is a complement for Coca Cola         Pepsi is more preferred than Coca Cola.     a decrease in the price of Coca Cola will cause demand for Pepsi Cola to increase.     Pepsi is less preferred than Coke     an increase of 10% in the price of Coca Cola will cause demand for Pepsi Cola decrease by 6.4%.

A rise in the price of a muffin from $2 to $3 results in a fall in the quantity demanded of muffins from 200 million to 160 million a day. Moreover, at today's price of a donut of $1.50, the quantity demanded of donuts increases from 70 million to 100 million a day.  Calculate the price elasticity of demand for muffins (show calculations) Is the demand for muffins elastic or inelastic? Calculate the cross elasticity of demand for donuts with respect to the price of a muffin. (show calculations) Based on the above calculation how would you characterize the relationship between muffins and donuts? Why would the business owner want to know this? Only typed solution

When the price of kittens was $20 each, the pet shop sold 20 per month. When they raised the price to $30 each, they sold 14 per month. What is the elasticity of demand for kittens? 1.66 Another value (not listed) 0.88 0.66 1.36