If good A and good B are substitutes, then the cross price elasticity of demand of good A for a change in the price of good B is
A)Negative and more negative than -1
B)Negative but less negative than -1
C)Zero
D)Positive

Question

Quizplus · Accepted Answer

When two goods are substitutes, an increase in the price of one leads to an increase in the demand for the other, resulting in a positive cross price elasticity of demand.

If Good a and Good B Are Substitutes, Then the Cross