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

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand between two products is positive if the products are substitutes, meaning that an increase in the price of one product leads to an increase in the demand for the other product.

If Two Products Are Substitutes, the ________ Elasticity of Demand