In order to prove that Coca Cola and 7-Up are substitutes, one should test the __________ and get a __________.
A)price elasticity of demand; number less than negative 1
B)income elasticity; positive number
C)cross-price elasticity; negative number
D)price elasticity of demand; number greater than negative 1
E)cross-price elasticity; positive number

Question

Quizplus · Accepted Answer

To prove that Coca Cola and 7-Up are substitutes, one should test the cross-price elasticity and get a positive number, indicating that an increase in the price of one leads to an increase in the demand for the other.

In Order to Prove That Coca Cola and 7-Up Are