The cross elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be
A)zero.
B)a positive number.
C)a small negative number.
D)a large negative number.

Question

Quizplus · Accepted Answer

The cross elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be positive because they are substitute goods. If the price of one brand increases, consumers are likely to switch to the other, increasing its demand.

The Cross Elasticity of Demand Between Quaker State Motor Oil