If two products are complements, the ________ elasticity of demand is ________.
A) income; positive
B) income; negative
C) cross-price; positive
D) cross-price; negative

Question

Quizplus · Accepted Answer

When two products are complements, the cross-price elasticity of demand is negative because an increase in the price of one product leads to a decrease in the demand for the other product.

If Two Products Are Complements, the ________ Elasticity of Demand