For which goods is the cross-price elasticity of demand MOST likely a large positive number?
A)hockey pucks and hockey sticks
B)DVDs and milk
C)french fries and onion rings
D)all of these because the cross-price elasticity is always a positive number

Question

Quizplus · Accepted Answer

Cross-price elasticity of demand is a large positive number for substitute goods, indicating that an increase in the price of one good leads to an increase in the demand for the other. French fries and onion rings are substitutes, fitting this description.

For Which Goods Is the Cross-Price Elasticity of Demand MOST