1. Choco Cookies sell for $40 per box, of which $5 consists of tax, and 6,666 boxes are sold every year. From previous research, you know that the price elasticity of demand for Choco Cookies is -1.2 (that is 1.2 in absolute value terms). All other cookies sell for $30 per box (which includes $5 tax), and 4,000 boxes of other cookies are sold every year. The cross-price elasticity of demand for other cookies, with respect to a change in the price of Choco Cookies, is 0.75. The income elasticity of demand is 1.2.