If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when the price of lettuce rises, the demand for salad dressing will ________.
A)increase
B)decrease
C)remain the same
D)become more inelastic

Question

Quizplus · Accepted Answer

If the cross-price elasticity of demand between two goods is negative, then the two goods are complements, implying that an increase in the price of one will lead to a decrease in demand for the other.

If the Cross-Price Elasticity of Demand Between Lettuce and Salad