Many younger people eat peanut butter AND jelly, whereas many older people eat peanut butter OR jelly. This suggests that the cross elasticity of demand between peanut butter and jelly is
A) negative for youngsters and positive for oldsters.
B) positive for youngsters and negative for oldsters.
C) negative for youngsters and zero for oldsters.
D) positive for youngsters and zero for oldsters.

Question

Quizplus · Accepted Answer

For youngsters, peanut butter and jelly are complements, leading to negative cross elasticity. For oldsters, they are substitutes, leading to positive cross elasticity.

Many Younger People Eat Peanut Butter AND Jelly, Whereas Many