If soda and potato chips are complements, then their cross elasticity of demand is
A) positive.
B) greater than 1.
C) negative.
D) 0.

Name: If soda and potato chips are complements, then their cross elasticity of demand is A) positive. B) greater than 1. C) negative. D) 0.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Complements have a negative cross elasticity of demand because as the price of one good increases, the demand for its complement decreases, and vice versa.

If Soda and Potato Chips Are Complements, Then Their Cross