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Flip-flops remain a popular footwear option. demand for flip-flops is (p)=24−p2 , and the supply function is (p)=p2

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The cross-price elasticity for left shoes and right shoes is expected to be positive because they are substitutes.

The cross-price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. In the case of left shoes and right shoes, since they are substitutes, we can predict that the cross-price elasticity would be positive. This means that if the price of left shoes increases, the demand for right shoes would also increase, and vice versa.

User Ivan Dubrov
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