Question

Suppose you could buy shoes one at a time, rather

than in pairs. What do you predict the cross-price

elasticity for left shoes and right shoes would be?

Short answer

Right and left shoes will compliment each other with negative cross price elasticity.

Step-by-step solution

Step 1. Meaning

Cross price elasticity is equal to the percentage change in quantity demanded of one good due to percentage change in the price of another good & formula used in case of complementary and substitute goods.

Complementary goods are the goods that complement each other, price increase of one good lead to a decrease in the quantity demanded of other goods

Step 2. Explanation 

Cross-price elasticity can be positive or negative depending on whether the goods are complementary or substitute.

An individual needs right and left shoes to make them in a use, otherwise, they won't be needful. Here, right and left shoes will be considered as complimentary goods in this situation, a rise in a price of a left shoe will decrease the quantity demanded Right shoe, so the cross-price elasticity will be negative.