If good A and good B are complements, then the cross price elasticity of demand of good A for a change in the price of good B is
A)Negative
B)Zero
C)Positive and greater than 1
D)Positive and less than 1

Question

Quizplus · Accepted Answer

If goods A and B are complements, then an increase in the price of good B will lead to a decrease in the demand for good A. This means that the cross price elasticity of demand of good A for a change in the price of good B will be negative.

If Good a and Good B Are Complements, Then the Cross