If goods A and B are complements, then
A) the cross elasticity of demand between A and B is negative.
B) the cross elasticity of demand between A and B is positive.
C) their income elasticities of demand are both greater than 1.
D) their income elasticities of demand are both less than 1.

Question

Quizplus · Accepted Answer

The cross elasticity of demand between two complementary goods is negative because an increase in the price of one leads to a decrease in the demand for the other.

If Goods a and B Are Complements, Then