The cross elasticity of demand between Coca-Cola and Pepsi-Cola is ________.Coke and Pepsi are ________.
A)positive;normal goods
B)positive;complements
C)negative;substitutes
D)positive;substitutes
E)negative;complements

Question

Quizplus · Accepted Answer

The cross elasticity of demand between Coke and Pepsi is positive because they are substitutes, meaning when the price of one increases, the demand for the other increases as well.

The Cross Elasticity of Demand Between Coca-Cola and Pepsi-Cola Is