Suppose the price of pepper increases by 25 percent and, as a result, the quanti

Question

Suppose the price of pepper increases by 25 percent and, as a result, the quantity of salt demanded( holding the price of salt constant) increases by 1 percent.
the cross-price elasticity of demand between pepper and salt is ___ ( enter your response rounded to two decimal places and include a minus sign if appropriate.)
In this example, pepper and salt are
Not related Substitutes Complements
If so, than the cross price elasticity of demand between pepper and salt would be?
Less than 1 Negative Zero Greater than -1 Positive Suppose the price of pepper increases by 25 percent and, as a result, the quantity of salt demanded( holding the price of salt constant) increases by 1 percent.
the cross-price elasticity of demand between pepper and salt is ___ ( enter your response rounded to two decimal places and include a minus sign if appropriate.)
In this example, pepper and salt are
Not related Substitutes Complements
If so, than the cross price elasticity of demand between pepper and salt would be?
Less than 1 Negative Zero Greater than -1 Positive Suppose the price of pepper increases by 25 percent and, as a result, the quantity of salt demanded( holding the price of salt constant) increases by 1 percent.
the cross-price elasticity of demand between pepper and salt is ___ ( enter your response rounded to two decimal places and include a minus sign if appropriate.)
In this example, pepper and salt are
Not related Substitutes Complements
If so, than the cross price elasticity of demand between pepper and salt would be?
Less than 1 Negative Zero Greater than -1 Positive

Explanation / Answer

Cross price elasticity = Change in quantity demanded of salt (%)/ Change in price of pepper (%)

CPE = 0.04

Pepper and salt are substitutes (because CPE is positive)

The cross price elasticity of demand between pepper and salt would be positive.

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