Which of the following pairs of goods are most likely to have a cross-price elasticity of demand that is greater than zero?
Apples and bananas
Gasoline and cars
Shoes and shoelaces
Pizza and bread sticks

Respuesta :

When the price of one of the items varies, the cross elasticity of demand analyses the link between the two. The answer is Apples and Bananas.

The effect of pricing these other products is helped to be determined by cross elasticity of demand. When one of the goods' prices changes, it assesses the link between them. This is accomplished by tracking the rise or fall in demand for a product in response to a change in the price of another product.

Items that have a coefficient of 0 are unrelated and independent from one another. Items may be weak replacements if the demand elasticity for the two things is positive but low.

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