If cross-price elasticity of demand between two goods is positive, the two goods are:
A)substitutes.
B)inferior.
C)complements.
D)normal.

Name: If cross-price elasticity of demand between two goods is positive, the two goods are: A)substitutes. B)inferior. C)complements. D)normal.
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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 Cross-Price Elasticity of Demand Between Two Goods Is Positive