If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes.

Name: If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes.
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Quizplus · Accepted Answer

If the cross-price elasticity of demand for two goods is negative, it means that the two goods are complements, not substitutes. This indicates that an increase in the price of one good leads to a decrease in the demand for the other good.

If the Cross-Price Elasticity of Demand for Two Goods Is