A rise in the price of good A shifts the ________ good B rightward if the cross elasticity of demand between A and B is ________.
A) demand curve for; negative
B) demand curve for; positive
C) supply curve of; negative
D) supply curve of; positive

Question

Quizplus · Accepted Answer

If the cross elasticity of demand between goods A and B is positive, it means they are substitute goods. Therefore, a rise in the price of good A will increase the demand for good B, shifting its demand curve rightward.

A Rise in the Price of Good a Shifts the ________