Which of the following pairs of goods is likely to have a negative cross-price elasticity?
A) Pens and paper notebooks
B) Nokia and Samsung cell phones
C) Compact discs (CDs) and electronic music files
D) Motorcycles and typewriters

Question

Quizplus · Accepted Answer

Negative cross-price elasticity indicates that the goods are complements, meaning that an increase in the price of one good leads to a decrease in the demand for the other. Pens and paper notebooks are typically used together, so they are complements.

Which of the Following Pairs of Goods Is Likely to Have