If the cross elasticity of demand for good x with respect to the price of good y is positive, then goods x and y are
A) normal goods.
B) inferior goods.
C) complements.
D) substitutes.

Question

Quizplus · Accepted Answer

A positive cross elasticity of demand indicates that as the price of good y increases, the demand for good x also increases, suggesting that goods x and y are substitutes.

If the Cross Elasticity of Demand for Good X with Respect