Cross price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. If the cross price elasticity of demand is negative, it means the two goods are complements - as the price of one good increases, the demand for the other good decreases.

Looking at the options:

1. Tea and coffee: These are substitutes. If the price of coffee increases, people might switch to drinking tea instead. So, the cross price elasticity would likely be positive.

2. Cars and gasoline: These are complements. If the price of cars increases, people might buy fewer cars, and therefore also buy less gasoline. So, the cross price elasticity would likely be negative.

3. Printers and printer ink: These are also complements. If the price of printers increases, people might buy fewer printers, and therefore also buy less printer ink. So, the cross price elasticity would likely be negative.

4. Beef and chicken: These are substitutes. If the price of beef increases, people might switch to eating more chicken instead. So, the cross price elasticity would likely be positive.

So, the goods that would likely have a negative cross price elasticity of demand are Cars and gasoline, and Printers and printer ink.

Question

Cross price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. If the cross price elasticity of demand is negative, it means the two goods are complements - as the price of one good increases, the demand for the other good decreases.

Looking at the options:

1. Tea and coffee: These are substitutes. If the price of coffee increases, people might switch to drinking tea instead. So, the cross price elasticity would likely be positive.

2. Cars and gasoline: These are complements. If the price of cars increases, people might buy fewer cars, and therefore also buy less gasoline. So, the cross price elasticity would likely be negative.

3. Printers and printer ink: These are also complements. If the price of printers increases, people might buy fewer printers, and therefore also buy less printer ink. So, the cross price elasticity would likely be negative.

4. Beef and chicken: These are substitutes. If the price of beef increases, people might switch to eating more chicken instead. So, the cross price elasticity would likely be positive.

So, the goods that would likely have a negative cross price elasticity of demand are Cars and gasoline, and Printers and printer ink.

Knowee AI · Accepted Answer

Cross price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. If the cross price elasticity of demand is negative, it means the two goods are complements - as the price of one good increases, the demand for the other good decreases.

Looking at the options:

1. Tea and coffee: These are substitutes. If the price of coffee increases, people might switch to drinking tea instead. So, the cross price elasticity would likely be positive.

2. Cars and gasoline: These are complements. If the price of cars increases, people might buy fewer cars, and therefore also buy less gasoline. So, the cross price elasticity would likely be negative.

3. Printers and printer ink: These are also complements. If the price of printers increases, people might buy fewer printers, and therefore also buy less printer ink. So, the cross price elasticity would likely be negative.

4. Beef and chicken: These are substitutes. If the price of beef increases, people might switch to eating more chicken instead. So, the cross price elasticity would likely be positive.

So, the goods that would likely have a negative cross price elasticity of demand are Cars and gasoline, and Printers and printer ink.

Which of the following goods would likely have a cross price elasticity of demand that is negative? Tea and coffee. Cars and gasoline. Printers and printer ink. Beef and chicken.

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