The Cross Elasticity of Demand Between Coca-Cola and Pepsi-Cola Is

question 77

Multiple Choice

The cross elasticity of demand between Coca-Cola and Pepsi-Cola is ________ so that Coke and Pepsi are ________.

• A) positive; complements
• B) positive; substitutes
• C) negative; normal goods
• D) negative; substitutes

---

Definitions:

Ownership Percentage

The fraction or percentage of a company that is owned by a shareholder or group of shareholders.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Additional Shares

Extra shares issued by a company, which can result from financing activities, stock splits, or dividend reinvestment plans.