If good A is a substitute for good B,then the cross elasticity of demand for good B with respect to the price of good A is
A)negative.
B)equal to 1.
C)positive.
D)zero.
E)equal to the cross elasticity of demand for good A with respect to the price of good B.

Question

Quizplus · Accepted Answer

When two goods are substitutes, an increase in the price of one good (good A) leads to an increase in the demand for the other good (good B). This relationship results in a positive cross elasticity of demand for good B with respect to the price of good A.

If Good a Is a Substitute for Good B,then the Cross