A negative cross-price elasticity for two goods and would arise if and were demand complements.

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Demand complements refer to a situation where an increase in the price of one good leads to a decrease in the demand for another good. In this case, the cross-price elasticity between the two goods would be negative. A negative cross-price elasticity indicates that the two goods are demand complements, meaning that an increase in the price of one good decreases the demand for the other good.

A Negative Cross-Price Elasticity for Two Goods and Would Arise