The cross price elasticity of demand for substitute goods is:
A) negative.
B) positive.
C) equal to 1.
D) positive only for normal goods.

Name: The cross price elasticity of demand for substitute goods is: A) negative. B) positive. C) equal to 1. D) positive only for normal goods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cross price elasticity of demand for substitute goods is positive because when the price of one good increases, the demand for its substitute increases as well.

The Cross Price Elasticity of Demand for Substitute Goods Is