If the price of one good goes up, and this causes the quantity demanded of another good to go down, the cross-price elasticity of demand will be negative.

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand is positive when two goods are substitutes, meaning if the price of one good goes up and the demand for another good goes down, they are not substitutes but rather complements, indicating a negative cross-price elasticity of demand.

If the Price of One Good Goes Up, and This