The cross price elasticity for Bud Light for a change in the price of Coor's Light is likely to be
A)Negative and more negative than -1
B)Negative but less negative than -1
C)Zero
D)Positive

Question

Quizplus · Accepted Answer

Cross price elasticity measures the responsiveness of the demand for one good to a change in the price of another good. For substitutes like Bud Light and Coor's Light, the cross price elasticity is expected to be positive, meaning if the price of Coor's Light increases, the demand for Bud Light is likely to increase as well.

The Cross Price Elasticity for Bud Light for a Change