If two goods are strong substitutes, cross elasticity is
A) negative
B) positive
C) between zero and one
D) zero
E) one

Name: If two goods are strong substitutes, cross elasticity is A) negative B) positive C) between zero and one D) zero E) one
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Question

Quizplus · Accepted Answer

When two goods are strong substitutes, the cross elasticity of demand is positive. This means that if the price of one good increases, the demand for the substitute good increases as well.

If Two Goods Are Strong Substitutes, Cross Elasticity Is