The best guess is that the cross elasticity between Rolaids and Tums, the two leading antacids in the country, is
A) negative
B) positive
C) zero
D) one
E) infinite

Name: The best guess is that the cross elasticity between Rolaids and Tums, the two leading antacids in the country, is A) negative B) positive C) zero D) one E) infinite
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Question

Quizplus · Accepted Answer

The cross elasticity between Rolaids and Tums is positive because they are substitute goods. When the price of one increases, the demand for the other increases as well.

The Best Guess Is That the Cross Elasticity Between Rolaids