If the cross elasticity of demand for two goods is positive, the two goods are _____ goods.
A) inferior
B) normal
C) substitute
D) complementary

Question

Quizplus · Accepted Answer

When the cross elasticity of demand for two goods is positive, it means that as the price of one good increases, the demand for the other good also increases, indicating that the two goods are substitutes for each other.

If the Cross Elasticity of Demand for Two Goods Is