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Quiz: Ch. 19 Quiz Demand & Supi Elasticity This Question: 5 pts 8 of 20 (20 comple If movie tickets and DVD rentals are subs
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Answer #1

Correct Answer:

Option D: the cross elasticity of the demand is positive.

Explanation:

Since the movie ticket and DVD rentals are substitute goods, that means if the price of one good rises the demand of the substitute good will increase,

Therefore when two goods are substitute to each other, the cross-price elasticity of the demand will be positive.

End of answer.

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