The cross elasticity of demand between Coca-Cola and Pepsi-Cola is positive, that is, Coke and Pepsi are substitutes because

Suppose the demand curve for a good is P = 10 - 2Q. Drawing the demand line and by calculating the point elasticity of demand, explain for which region of prices the demand will be a) Elastic b) Unit elastic c) Inelastic

If cross-price elasticity of demand between two goods is positive, the two goods are:

The price of a VW car increases from €30,000 to €32,500, and as a result Mercedes notice that the demand for their cars increases from 500 to 550. What does this tell us about the relationship between VW and Mercedes cars, and what is the cross elasticity of demand? VW and Mercedes are complements, and XED=0.8333 Ob. VW and Mercedes are substitutes, and XED=0.8333 VW and Mercedes are complements, and XED = -1.2 d. VW and Mercedes are substitutes, and XED = 1.2 VW and Mercedes are complements, and XED = 1.2