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The table gives estimates of own price and cross price elasticities of demand for tea and instant coffee. Elasticity with respect to the price of

The table gives estimates of own price and cross price elasticities of demand for tea and instant coffee.

Elasticity with respect to the price of

Commodity

Tea Instant coffee

Tea Instant coffee -0.48 +0.13 +0.11 -0.67

Other things being equal, what would be the change in the quantity of instant coffee demanded as a result of a 1% decrease in the price of tea?

1)

-0.11%

2)

+0.11%

3)

-0.13%

4)

+0.13%

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