Which of the following pairs of goods are most likely to have a negative cross-price elasticity of demand?
A) Hotdogs and hotdog buns
B) Coke and Pepsi
C) Rail tickets and plane tickets
D) A Luciano Pavarotti compact disc and a Placido Domingo compact disc (Both Pavarotti and Domingo are opera stars.)

Question

Quizplus · Accepted Answer

Hotdogs and hotdog buns are complementary goods, meaning that an increase in the price of one leads to a decrease in the demand for the other, resulting in a negative cross-price elasticity of demand.

Which of the Following Pairs of Goods Are Most Likely