If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are
A) substitutes.
B) unrelated.
C) complements.
D) not related.

Question

Quizplus · Accepted Answer

A positive cross price elasticity of demand means that an increase in the price of one good (in this case, Lakers tickets) leads to an increase in the demand for the other good (in this case, Dodgers tickets). Therefore, Lakers tickets and Dodgers tickets are substitutes, as consumers switch from one good to the other in response to changes in price.

If the Cross Price Elasticity of Demand Between Los Angeles