Research has found that the an increase in the price of Coca-Cola would increase quantity demanded for Pepsi. Is the cross elasticity of demand between the two products positive or negative? What does this imply about the relationship of Coca-Cola to Pepsi? In addition, research has found that the an increase in the price of hot dog buns would decrease quantity demanded for hot dogs. Is the cross elasticity of demand between the two products positive or negative? What does this imply about the relationship between hot dog buns and hot dogs? Please explain in detail your logic for both of these relationships. Also, can you think of another example of products that would behave in similar ways to Coca-Cola/Pepsi and hot dogs/ hot dog buns?
Research has found that the an increase in the
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