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The most reasonable coefficient for the cross elasticity of demand between Coke and Pepsi is: -2.5...

The most reasonable coefficient for the cross elasticity of demand between Coke and Pepsi is: -2.5 0.0 3.4 infinite

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Answer #1

As it is well known that coke and Pepsi are substitutes

For substitutes, coefficient of cross elasticity is always positive value

It is positive because if the price of one item rises then quantity demand for other item rises and vice versa

So the answer is 3.4

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