If the cross elasticity of demand between chicken and fish is 0.8, then chicken and fish are
A) complements.
B) not related.
C) substitutes.
D) normal goods.

Question

Quizplus · Accepted Answer

The cross elasticity of demand between chicken and fish being 0.8 (a positive number) indicates that they are substitutes. This is because an increase in the price of one leads to an increase in the demand for the other.

If the Cross Elasticity of Demand Between Chicken and Fish