Two goods whose cross elasticity of demand equals -10.5 are likely close complements.

Name: Two goods whose cross elasticity of demand equals -10.5 are likely close complements.
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Question

Quizplus · Accepted Answer

A negative cross elasticity of demand indicates that the two goods are complements, and a value of -10.5 suggests they are closely related, as the demand for one decreases significantly when the price of the other increases.

Two Goods Whose Cross Elasticity of Demand Equals -10