For which of the following pairs of goods is the cross elasticity of demand positive?
A) tennis balls and tennis rackets
B) videotapes and laundry detergent
C) airline trips and textbooks
D) beef and chicken

Question

Quizplus · Accepted Answer

Cross elasticity of demand is positive for substitute goods. Beef and chicken are substitutes, so an increase in the price of one will lead to an increase in the demand for the other.

For Which of the Following Pairs of Goods Is the Cross