Question

The cross-price elasticity of demand measures the percentage change in quantity of a good demanded when the price of a different good changes by 1%. The income elasticity of demand measures the percentage change in the quantity of a good demanded when the income of buyers changes by 1%.
For the following, match each pair of goods to their expected cross-price elasticity sign, positive, negative, or zero.
Negative Cross-Price Elasticity Positive Cross-Price Elasticity Zero Cross-Price Elasticity

Answer 1

Answer:

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answer :

For Negative cross-price Elasticity :

DVD players and DVD and Shampoo and conditioner

Positive cross-price Elasticity :

Beer and Wine  and  Soda pop and iced tea

Zero cross-price elasticity :

Coffees and shoes

Explanation:

For Negative cross-price Elasticity :

DVD players and DVD and Shampoo and conditioner ; this is because the percentage change in the price of any of the good will affect the demand for both goods negatively or positively

For positive cross-price Elasticity :

Beer and Wine  and  Soda pop and iced tea : The percentage change in the price of any of the good will affect the demand of the other good positively ( increase in demand of the other good )

For Zero cross-price Elasticity :

Coffees and shoes; The percentage change in the price of any of the good will not affect the other because both goods are not related