For which pairs of goods is the cross-price elasticity most likely to be negative?
A)peanut butter and jelly
B)automobile tires and coffee
C)pens and pencils
D)paperback novels and electronic books for e-readers

Question

Quizplus · Accepted Answer

Peanut butter and jelly are complementary goods, meaning that an increase in the price of one leads to a decrease in the demand for the other, resulting in a negative cross-price elasticity.

For Which Pairs of Goods Is the Cross-Price Elasticity Most