Which pair of goods is MOST likely to have a cross-price elasticity of demand that is greater than zero?
A)skates and skating rinks
B)pineapples and honeydew melons
C)bacon and eggs
D)cars and tires

Question

Quizplus · Accepted Answer

Cross-price elasticity of demand greater than zero indicates that the goods are substitutes. Pineapples and honeydew melons are both fruits and can be substituted for each other, unlike the complementary pairs in the other options.

Which Pair of Goods Is MOST Likely to Have a Cross-Price