The Cross-Price Elasticity of Demand Between Milk and Soft Drinks

question 15

Multiple Choice

The cross-price elasticity of demand between milk and soft drinks is likely to be

• A)negative because the goods are complements
• B)positive because the goods are complements
• C)negative because the goods are substitutes
• D)positive because the goods are substitutes
• E)0 because the goods are not usually consumed by the same person at one time

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Definitions:

Tropical Rainforest

An ecosystem characterized by high rainfall, lush vegetation, and a diverse array of plant and animal species, critical for producing oxygen and storing carbon dioxide.

Detritus Feeder

An organism that feeds on dead organic material, especially plant detritus, contributing to decomposition and nutrient cycling.

Decomposer

Organisms, usually bacteria and fungi, that break down dead or decaying organic matter, recycling nutrients in the ecosystem.

Food Chain

A series of organisms each dependent on the next as a source of food, representing the flow of energy and nutrients in an ecosystem.