If two goods are complements, their cross-price elasticity will be
A)positive.
B)negative.
C)zero.
D)equal to the difference between the income elasticities of demand for the two goods.

Question

Quizplus · Accepted Answer

When two goods are complements, their cross-price elasticity is negative because an increase in the price of one good leads to a decrease in the demand for the other good.

If Two Goods Are Complements, Their Cross-Price Elasticity Will Be