We would expect the cross elasticity between tennis racquets and tennis balls to be:
A) negative.
B) positive.
C) zero.
D) one.
E) infinite.

Question

Quizplus · Accepted Answer

The cross elasticity between tennis racquets and tennis balls is likely to be positive because they are complements. An increase in the price of tennis racquets will lead to a decrease in the demand for tennis balls, and vice versa.

We Would Expect the Cross Elasticity Between Tennis Racquets and Tennis