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Answer to Question #221037 in Economics for Pabi
Question #221037
The cross elasticity of demand between a McDonalds burger and a Nandos burger is
A. negative because McDonalds burger and Nandos burger are complements.
B. positive because McDonalds burger and Nandos burger are substitutes.
C. positive because McDonalds burger and Nandos burger are complements.
D. negative because McDonalds burger and Nandos burger are substitutes.
Expert's answer
The cross elasticity of demand between a McDonalds burger and a Nandos burger is positive because McDonalds burger and Nandos burger are substitutes.
So, the correct answer is B.
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