Refer to the information provided in Figure 5.5 below to answer the question that follows. Figure 5.5
-Refer to Figure 5.5. As the price of good W increased, the demand for good Y shifted from D₁ to D₂. The cross-price elasticity of demand between W and Y is

Question

Refer to the information provided in Figure 5.5 below to answer the question that follows.

Figure 5.5
-Refer to Figure 5.5. As the price of good W increased, the demand for good Y shifted from D₁ to D₂. The cross-price elasticity of demand between W and Y is

Quizplus · Accepted Answer

When the price of good W increases and the demand for good Y also increases (as indicated by the shift in demand), it suggests that goods W and Y are substitutes. Therefore, the cross-price elasticity of demand between them is positive.

Refer to the Information Provided in Figure 5