If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers.

Name: If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

A positive cross elasticity of demand indicates that the two goods are substitutes, as an increase in the price of one leads to an increase in the demand for the other.

If the Cross Elasticity of Demand Between Jeep Cherokees and Chevy