When the price of Starbucks coffee increased by 8 percent, the quantity demanded of Peet’s coffee increased by 10 percent.

When the price of Starbucks coffee increased by 8 percent, the quantity demanded of Peet’s coffee increased by 10 percent. Calculate the cross-price elasticity of demand between Starbucks coffee and Peet’s coffee. What is the relationship between the two products?

Hint: The relationship between the two products is either substitutes or complements. 

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