The cross-price elasticity of demand for bacon and eggs likely would be negative because bacon and eggs are complements for many people.

Question

Quizplus · Accepted Answer

When two goods are complements, an increase in the price of one leads to a decrease in the demand for the other, resulting in a negative cross-price elasticity of demand. Bacon and eggs are commonly consumed together, so if the price of bacon increases, people might buy less bacon and therefore also less eggs.

The Cross-Price Elasticity of Demand for Bacon and Eggs Likely