In order to prove that Motrin and Ibuprofen are substitutes, one should measure the ________ and get a ________.
A)cross-price elasticity; positive number
B)cross-price elasticity; negative number
C)price elasticity of demand; number greater than 1 (in absolute value)
D)price elasticity of demand; number less than 1 (in absolute value)

Question

Quizplus · Accepted Answer

To prove that Motrin and Ibuprofen are substitutes, one should measure their cross-price elasticity, which shows the responsiveness of the quantity demanded of one good to changes in the price of another. If the cross-price elasticity is a positive number, it indicates that the two goods are substitutes, meaning that an increase in the price of one good leads to an increase in the demand for the other good. Therefore, option A is the correct answer.

In Order to Prove That Motrin and Ibuprofen Are Substitutes