Calculate the cross elasticity of demand

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When price of Coke rises from $5 to $7, quantities demanded for Coke falls from 1,000 to 800, and quantities demanded for Pepsi rises from 300 to 400. Calculate the cross elasticity of demand, using the mid-point approach.

1) Calculate cross elasticity of demand.

2) Coke and Pepsi are complementary goods or substitute goods?

Reference no: EM131865270

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