Problem
One type of elasticity that economists often use is the cross-price elasticity, which is measured as the percentage change in the quantity of a good when the price of a different good changes by 1%.
a. What sign might you expect the cross-price elasticity to have if the two goods are shampoo and hair conditioner? Why?
b. What sign might you expect the cross-price elasticity to have if the two goods are gasoline and ethanol? Why?
c. What sign might you expect the cross-price elasticity to have if the two goods are coffee and shoes? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.