If the cross elasticity of demand for two goods is negative,
A)one of the goods is necessarily a normal good, and the other good is necessarily an inferior good.
B)both goods are normal goods.
C)the goods are substitutes.
D)the goods are complements.

Question

Quizplus · Accepted Answer

When the cross elasticity of demand for two goods is negative, it means that as the price of one good increases, the demand for the other good decreases, indicating that the goods are complements.

If the Cross Elasticity of Demand for Two Goods Is