The cross price elasticity for computer peripherals (mouse, monitors, printers)for a change in the price of computers (the CPU)is likely to be
A)Negative
B)Zero
C)Positive and greater than 1
D)Positive and less than 1

Question

Quizplus · Accepted Answer

Computer peripherals are complementary goods to computers, so an increase in the price of computers would likely decrease the demand for peripherals, resulting in a negative cross price elasticity.

The Cross Price Elasticity for Computer Peripherals (Mouse, Monitors, Printers)for