Cross-Price Elasticity. The South Beach Cafe recently reduced appetizer prices from $19 to $9 for afternoon “early bird” customers and enjoyed a resulting increase in sales from 90 to 150 orders per day. Beverage sales also increased from 398 to 685 units per day.

Calculate the arc cross-price elasticity of demand between beverage sales and appetizer prices .

Positive cross elasticity means

that if the price of one good goes up, demand for another does, too

that if the price of one good goes up, quantity demanded for another does, too

that if the price of one good goes up, supply for another does, too

that if the price of one good goes up, demand for another does not