If two goods are substitutes,their cross-price elasticity of demand should be:
A)less than 0.
B)negative but almost equal to 0.
C)equal to 0.
D)greater than 0.

Question

Quizplus · Accepted Answer

If two goods are substitutes, then an increase in the price of one good would lead to an increase in demand for the other good. Therefore, the cross-price elasticity of demand should be greater than 0.

If Two Goods Are Substitutes,their Cross-Price Elasticity of Demand Should