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When the price of milk rose 50%, the quantity of milk sold fell 25% and the sale of breakfast cereal also fell 25%. 1.

When the price of milk rose 50%, the quantity of milk sold fell 25% and the sale of breakfast cereal also fell 25%. 1. Calculate the price elasticity of demand for milk. Show you calculations. 2. Calculate the cross elasticity of demand for breakfast cereal. Show your calculation.

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