Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean?

Question

Answer

If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.

Answer

The demand for orange juice is 6 times greater than the demand for grapefruit juice.

Answer

A 6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption.

Answer

A 1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption.

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