To say that two goods are unrelated, their cross price elasticities of demand should be:
A) less than zero.
B) significantly negative.
C) equal to zero.
D) greater than zero.

Question

Quizplus · Accepted Answer

If two goods are unrelated, their cross price elasticities of demand should be equal to zero. This means that a change in the price of one good will not impact the demand for the other good. If the cross price elasticity of demand is less than or greater than zero, it indicates that the two goods are related in some way, either as substitutes or complements, respectively.

To Say That Two Goods Are Unrelated, Their Cross Price