If the cross-price elasticity of two goods is negative,then the two goods are
A)necessities.
B)complements.
C)normal goods.
D)inferior goods.

Question

Quizplus · Accepted Answer

Complements are goods that are consumed together, such as peanut butter and jelly. When the price of one of the goods increases, the demand for the other good decreases, resulting in a negative cross-price elasticity. Therefore, if the cross-price elasticity of two goods is negative, they are likely to be complementary goods.

If the Cross-Price Elasticity of Two Goods Is Negative,then the Two