Some observers have been predicting for years that the printed book will be replaced with the electronic book. What does this imply about the cross -price elasticity between printed books and electronic books?
A) It is negative.
B) It is zero.
C) It is positive.
D) It is not possible to determine this without more information.

Question

Quizplus · Accepted Answer

The prediction that electronic books will replace printed books implies that these two goods are substitutes, which means that if the price of one increases, the demand for the other will increase as well. This relationship is characterized by a positive cross-price elasticity.

Some Observers Have Been Predicting for Years That the Printed