The pair of items that is likely to have the largest positive cross-price elasticity of demand is:
A) coffee and tea.
B) skis and ski boots.
C) pizza and pepperoni.
D) milk and cookies.

Name: The pair of items that is likely to have the largest positive cross-price elasticity of demand is: A) coffee and tea. B) skis and ski boots. C) pizza and pepperoni. D) milk and cookies.
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Question

Quizplus · Accepted Answer

Coffee and tea are substitutes, so an increase in the price of coffee will lead to an increase in the demand for tea.

The Pair of Items That Is Likely to Have the Largest