The price elasticity of demand between milk and soda is likely to be:
A) negative, because the goods are complements.
B) positive, because the goods are complements.
C) negative, because the goods are substitutes.
D) positive, because the goods are substitutes.
E) 0, because the goods are not usually consumed by the same person at one time.

Question

Quizplus · Accepted Answer

Milk and soda are likely to be substitutes, as consumers may choose one over the other depending on their preferences. Therefore, the price elasticity of demand between the two goods is likely to be positive, meaning that as the price of one good increases, consumers will demand more of the other good.

The Price Elasticity of Demand Between Milk and Soda Is