QUESTION 47 zero. The cross price elasticity for Coke for a change in the price of...

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QUESTION 47 zero. The cross price elasticity for Coke for a change in the price of Pepsi is likely to be negative but less ne

Answer 1

Answer #1

Cross price elasticity is determined using the following formula

ΔQA Ex =%APB

47. Coke and Pepsi are substitute to each other therefore, the cross elasticity between the two goods must be positive.

48. Papa John Pizza and Pizza hut will be substitute. Therefore, the cross elasticity will be positive.

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Answer 2

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