92,000 x $1000 $92,000,000 ($92 million). As a percentage o each program, wh n)
ID: 2428708 • Letter: 9
Question
92,000 x $1000 $92,000,000 ($92 million). As a percentage o each program, wh n) and the annual cost of the second program would be the actual cost of ich of his estimates is likely to be less accurate? Please explain. Explain whether the cross-price elasticity of demand for the following pairs of products are likely positive or negative . a. Coca-Cola and Pepsi b. Flour and baking soda c. Beef and chicken d. Peanut butter and jelly e. Gasoline and Metro rides f. Cars and auto insurance g. College courses and text booksExplanation / Answer
In case the two goods are substitutes for each other, the cross price elasticity will be positive
And if the two goods are complementary the cross price elasticity will be negative.
And if two goods are not related to each other, the cross price elasticity will be 0
A) Coca- Cola and Pepsi are substitute goods so there cross price elasticity will be positive.
B) Flour and baking soda are complementary goods so the cross price elasticity will be negative.
C)Beef and chicken are substitute goods so the cross price elasticity will be positive.
D) Peanut butter and jelly are complementary goods so the cross price elasticity will be negative.
E) Gasoline and Metro rides are substitute goods so the cross price elasticity will be positive.
F) Car and auto insurance are complementary to each other so cross price elasticity will be negative.
G) College courses and text books are complementary to each other so the cross price elasticity will be negative.
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