If the price of apples went up by 25 percent, which of the following values of the cross price elasticity for cars would be most reasonable to anticipate?
A) 0.0
B) 1.2
C) -2.5
D) -1.0

Question

Quizplus · Accepted Answer

Apples and cars are unrelated goods, so the cross price elasticity would be close to 0, indicating no relationship between the price change of apples and the demand for cars.

If the Price of Apples Went Up by 25 Percent