When the cross elasticity of demand is ________,the goods or services are ________.
A)zero;substitutes
B)negative;substitutes
C)positive;complements
D)positive;substitutes

Question

Quizplus · Accepted Answer

When the cross elasticity of demand is positive, it means that an increase in the price of one good will lead to an increase in the demand for the other good. This typically occurs with substitute goods, which are goods that can be used in place of each other. Therefore, the goods or services are substitutes.

When the Cross Elasticity of Demand Is ________,The Goods or Services