Which pair of goods is MOST likely to have a cross-price elasticity of demand that is greater than zero?
A)shoes and shoelaces
B)apples and bananas
C)pancakes and bacon
D)gasoline and cars

Question

Quizplus · Accepted Answer

Apples and bananas are substitute goods, meaning that an increase in the price of one will likely lead to an increase in the demand for the other, resulting in a positive cross-price elasticity of demand.

Which Pair of Goods Is MOST Likely to Have a Cross-Price