Two streaming apps raise subscription prices on the same day. If many students treat the apps as close substitutes, what does this suggest about the cross-price elasticity of demand between them?

• A. Negative (cross-price elasticity is negative, indicating complements)
• B. Positive and relatively large (high positive cross-price elasticity)
• C. Zero (cross-price elasticity is zero, indicating unrelated goods)
• D. Positive but close to zero (weak substitutes with low cross-price elasticity)

Answer: (B)