If two goods are substitutes,their cross-price elasticity will be
A)positive.
B)negative.
C)zero.
D)equal to the difference between the income elasticities of demand for the two goods.

Question

Quizplus · Accepted Answer

When two goods are considered as substitutes, an increase in the price of one good will lead to an increase in the demand for the other good. This relationship results in a positive cross-price elasticity between the two goods, indicating that the change in the price of one good affects the quantity demanded of the other good, and the value of cross-price elasticity will be positive.

If Two Goods Are Substitutes,their Cross-Price Elasticity Will Be