If two products are substitutes, then the:
A)income elasticity of demand for both will be high.
B)price elasticity of demand for both will be positive.
C)cross-price elasticity of demand between them will be negative.
D)cross-price elasticity of demand between them will be positive.

Question

Quizplus · Accepted Answer

If two goods are substitutes, then if the price of one increases, the quantity demanded of the other will increase, implying that the cross-price elasticity of demand between the two goods is positive.

If Two Products Are Substitutes, Then The