If the cross-price elasticity of demand between two goods is 1.75,then the two goods are:

Name: If the cross-price elasticity of demand between two goods is 1.75,then the two goods are:
Brand: Quizplus
Rating: 4.7 (44 reviews)

Question

Quizplus · Accepted Answer

A positive cross-price elasticity of demand between two goods indicates that they are substitutes, as an increase in the price of one good leads to an increase in the demand for the other good. The magnitude of the elasticity coefficient (1.75) suggests that the two goods are relatively close substitutes.

If the Cross-Price Elasticity of Demand Between Two Goods Is