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 decreased, 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 decreased, the demand for good Y shifted from D₁ to D₂. The cross-price elasticity of demand between W and Y is

Quizplus · Accepted Answer

The demand for good Y increased as the price of good W decreased, indicating that W and Y are complementary goods. This results in a negative cross-price elasticity of demand.

Refer to the Information Provided in Figure 5