A positive cross elasticity of demand between two goods suggests that the goods are
A) inelastic.
B) elastic.
C) complements.
D) substitutes.

Name: A positive cross elasticity of demand between two goods suggests that the goods are A) inelastic. B) elastic. C) complements. D) substitutes.
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Question

Quizplus · Accepted Answer

A positive cross elasticity of demand indicates that as the price of one good increases, the demand for another good also increases, suggesting that the two goods are substitutes for each other.

A Positive Cross Elasticity of Demand Between Two Goods Suggests