Which of these could be a possible cross elasticity of demand measure for butter and margarine?
A) 0
B) 0.8
C) -1.8
D) -0.8

Name: Which of these could be a possible cross elasticity of demand measure for butter and margarine? A) 0 B) 0.8 C) -1.8 D) -0.8
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Question

Quizplus · Accepted Answer

Butter and margarine are substitute goods, so the cross elasticity of demand is positive, indicating that an increase in the price of one leads to an increase in the demand for the other.

Which of These Could Be a Possible Cross Elasticity of Demand