If good A is a complement of good B,then the cross elasticity of demand for good B with respect to the price of good A is
A)equal to 1.
B)equal to the cross elasticity of demand for good A with respect to the price of good B.
C)positive.
D)zero.
E)negative.

Question

Quizplus · Accepted Answer

When two goods are complements, an increase in the price of one leads to a decrease in the demand for the other, resulting in a negative cross elasticity of demand.

If Good a Is a Complement of Good B,then the Cross