If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:
A)inferior.
B)elastically demanded.
C)complements.
D)substitutes.

Name: If the cross-price elasticity of demand between two goods is -1.2, then the two goods are: A)inferior. B)elastically demanded. C)complements. D)substitutes.
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Question

Quizplus · Accepted Answer

The cross-price elasticity of demand between complements is negative: 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 Two Goods Is