Question
Which cross price elasticity would you expect to be higher, soy milk vs non-organic dairy milk or Soy milk vs. organic dairy milk? Why? Organic
Which cross price elasticity would you expect to be higher, soy milk vs non-organic
dairy milk or Soy milk vs. organic dairy milk? Why?
Organic Milk -1.76
Non-organic milk -1.03
Soy milk -2.78
I believe that Soy milk and organic milk would have a higher cross-demand of elasticity because of the magnitude between those two. Am I thinking about this the right way?
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
9th edition
9781259896422, 1259290611, 1259896420, 978-1259290619
