The price elasticity of demand between rifles and bullets is likely to be:
A) negative, because the goods are complements.
B) positive, because the goods are complements.
C) negative, because the goods are substitutes.
D) positive, because the goods are substitutes.

Question

Quizplus · Accepted Answer

The price elasticity of demand between complements is typically negative, indicating that an increase in the price of one good (e.g., rifles) leads to a decrease in the demand for the complementary good (e.g., bullets).

The Price Elasticity of Demand Between Rifles and Bullets Is