Which of these would MOST likely reflect the cross elasticity of demand between honey and sugar?
A) -10
B) -1
C) 0
D) 2

Question

Quizplus · Accepted Answer

The cross elasticity of demand between honey and sugar is likely to be positive (greater than 0) because they are substitute goods. A positive cross elasticity indicates that as the price of one good increases, the demand for the substitute good increases. A value of 2 suggests a relatively elastic relationship, where a change in the price of one significantly affects the demand for the other.

Which of These Would MOST Likely Reflect the Cross Elasticity