The cross-price elasticity of demand between peanut butter and jelly is likely:
A) a positive number.
B) a very high positive number.
C) a negative number.
D) less than one.

Question

Quizplus · Accepted Answer

Peanut butter and jelly are typically considered complementary goods, meaning that an increase in the price of one would likely decrease the demand for the other, resulting in a negative cross-price elasticity of demand.

The Cross-Price Elasticity of Demand Between Peanut Butter and Jelly