Calculating cross - elasticity of demand.
In the figures below you are given two sets of axes, one for coffee and one for tea. The Cross-elasticity of demand of coffee with respect to the price of tea is +1.0. The price elasticity of demand for tea is -1.0. The price of tea rises from $5.00 to $6.00. Illustrate what happens to the demand quantity demanded for coffee? Show on the figure. Illustrate what happens to the demand and quantity demanded for tea? Show on the figure.
