If cross-elasticity of demand is positive, an increase in price of the alleged monopolistic product will result in consumers' sticking to the same product.

Question

Quizplus · Accepted Answer

If cross-elasticity of demand is positive, it means that an increase in price of the alleged monopolistic product will lead to consumers switching to substitute products that are relatively cheaper.

If Cross-Elasticity of Demand Is Positive, an Increase in Price