Since they are often used together,peanut butter and jelly are:
A)substitutes and have a positive cross-price elasticity.
B)complements and have a positive cross-price elasticity.
C)substitutes and have a negative cross-price elasticity.
D)complements and have a negative cross-price elasticity.
E)inferior goods when the demand or goods is positive.

Question

Quizplus · Accepted Answer

Peanut butter and jelly are complements, meaning they are often used together. When the price of one increases, the demand for the other typically decreases, resulting in a negative cross-price elasticity.

Since They Are Often Used Together,peanut Butter and Jelly Are