If cross elasticity between two goods is zero, then the goods are
A) perfect substitutes
B) perfect complements
C) good but not perfect substitutes
D) not considered to be substitutes
E) good but not perfect complements

Question

Quizplus · Accepted Answer

If the cross elasticity between two goods is zero, it means that the demand for one good does not change when the price of the other good changes. This indicates that the goods are not considered to be substitutes (or complements) in the eyes of consumers, as their consumption patterns are independent of each other's price changes.

If Cross Elasticity Between Two Goods Is Zero, Then the Goods