If the cross-price elasticity between good A & B is negative, we know the goods are:
A)inferior goods.
B)complements.
C)inelastic.
D)substitutes.

Question

Quizplus · Accepted Answer

A negative cross-price elasticity means that as the price of good A increases, the quantity demanded of good B decreases. This is a characteristic of complementary goods, which are goods that are often consumed together. Examples include cereal and milk or gasoline and cars. When the price of one good increases, it makes the other good less appealing, leading to a decrease in the quantity demanded.

If the Cross-Price Elasticity Between Good a & B Is