If two goods are complementary, we can assume that the cross-price elasticity of demand for these goods is:
A) between 0 and 1.
B) equal to 0.
C) greater than 1.
D) less than 0.

Question

Quizplus · Accepted Answer

Complementary goods have a negative cross-price elasticity of demand, meaning that if the price of one good increases, the demand for the other good decreases.

If Two Goods Are Complementary, We Can Assume That the Cross-Price