We would expect to see a positive cross-price elasticity between
A) peanut butter and jelly.
B) ice cream and frozen yogurt.
C) basketballs and steak.
D) sneakers and socks.
E) computers and iPods.

Question

Quizplus · Accepted Answer

Ice cream and frozen yogurt are substitute goods, meaning that if the price of one increases, the demand for the other is likely to increase, resulting in a positive cross-price elasticity.

We Would Expect to See a Positive Cross-Price Elasticity Between