Other Elasticities Practice Test

Based on the changes described, the price of movie tickets rises by 20%, and the quantity demanded of popcorn falls by 10%. This question tests cross-price elasticity of demand (XED) between popcorn (quantity response) and movie tickets (price change). Are popcorn and movie tickets substitutes, complements, or unrelated goods?

The price of tea rises from $2.00 to $2.20 per cup (a 10% increase). Over the same period, the quantity demanded of coffee rises from 100 to 110 cups per day (a 10% increase). Based on the changes described, using cross-price elasticity of demand (XED) between coffee and tea, are the two goods substitutes, complements, or unrelated?