You are the manager of a local tea shop called Unicorn Tears. You have the following information about the daily
demand for your business
Qdtea = 50 − 5ptea + 4pcoffee + 6I − 3psugar
Where I is income. Suppose that the current equilibrium price and quantity are ptea*=3 and Qtea*=90. Which of the following statements regarding the price elasticity of demand at equilibrium is true?