If the cross-price elasticity of demand of two goods is negative,what are those two goods called
A)substitutes
B)complements
C)normal goods
D)inferior goods

Question

Quizplus · Accepted Answer

When the cross-price elasticity of demand of two goods is negative, it indicates that the two goods are complements. This means that the demand for one good is directly related to the demand for the other good. For example, the demand for hot dogs is directly related to the demand for hot dog buns. If the price of hot dogs increases, the demand for hot dog buns will decrease, and vice versa.

If the Cross-Price Elasticity of Demand of Two Goods Is