Which of the following pairs of goods would be expected to have a positive cross-price elasticity of demand?
A)coffee and tea.
B)gasoline and large SUVs.
C)tennis racquets and tennis balls.
D)hot dogs and hot dog buns.

Question

Quizplus · Accepted Answer

Coffee and tea are substitutes, so an increase in the price of coffee would lead to an increase in demand for tea, resulting in a positive cross-price elasticity of demand between the two goods.

Which of the Following Pairs of Goods Would Be Expected