The cross-price elasticity of demand between spaghetti and spaghetti sauce is most likely:
A)positive.
B)negative.
C)zero.
D)more information is needed to determine.

Question

Quizplus · Accepted Answer

Spaghetti and spaghetti sauce are typically complementary goods, meaning that an increase in the price of one would likely lead to a decrease in the demand for the other, resulting in a negative cross-price elasticity of demand.

The Cross-Price Elasticity of Demand Between Spaghetti and Spaghetti Sauce