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10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. it appears that: _________.

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The answer is:
Cross-price elasticity of demand for ice tea is -2.

It appeared that the cross-price elasticity of demand for the ice-tea is 2.

Given that,

  • There is an increment in the price of soda is 10%.
  • And, there is an increment in the quantity of 20%.

Based on the above information, the cross-price elasticity of demand should be

= 20% ÷ 10%

= 2

Therefore we can conclude that it appeared that the cross-price elasticity of demand for the ice-tea is 2.

Learn more: brainly.com/question/2733525

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