Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?
A) Pancakes and syrup
B) Hot dogs and hamburgers
C) Orange juice and grapefruit juice
D) Peanuts and cat food

Question

Quizplus · Accepted Answer

Pancakes and syrup are complementary goods, meaning that an increase in the price of one will likely lead to a decrease in the demand for the other, resulting in a negative cross-price elasticity of demand.

Which of the Following Pairs of Goods Is Likely to Have