Question

On some days gus makes his own salad for lunch, preferring to use either iceberg or romaine lettuce, topped off with lots of fresh tomatoes. the cross-price elasticity of demand for iceberg lettuce with respect to romaine lettuce is _____, and the cross-price elasticity of demand for iceberg lettuce with respect to tomatoes is _____.

Answer 1

The correct answer follows; the cross price elasticity of demand for iceberg lettuce with respect to romain lettuce is positive and the cross price elasticity of demand for iceberg lettuce with respect to tomatoes is negative. Cross price elasticity is being defined as a demand of which measures the quantity demand responsiveness in regards of a good in which changes for another good.