Suppose the manager of a store wants to know whether the product of the store across the street is a substitute for her product. In other words, she would need to know if the cross-price elasticity of demand for the products . A)is positive
B)is negative
C)is unity
D)is zero
E)is infinite

A) is positive.

Explanation:

A substitute product can be defined as a product that a consumer sees as an alternative to another product and as such would offer similar benefits or satisfaction to the consumer.

Suppose the manager of a store wants to know whether the product of the store across the street is a substitute for her product. In other words, she would need to know if the cross-price elasticity of demand for the products is positive.

A cross-price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to the change in price of a related product, all things being equal.

For substitute products (goods), the cross-price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.