Cross-price elasticity of the demand for beer

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Suppose that the cross-price elasticity of the demand for beer with respect to the price of wine is +0.30 in Sweeden, but -0.25 in Luxemborg. Which of the following is true:

a. Wine is a complement for wine in Sweeden and Luxemborg

b. Wine is a substitute for wine in Sweeden and Luxemborg

c. Wine is a complement for wine in Sweeden and a substitute in Luxemborg

d. Wine is a substitute for wine in Sweeden and a complement in Luxemborg

Reference no: EM131398900

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