A negative value for
A)price elasticity of supply implies an upward-sloping supply curve.
B)cross elasticity of demand implies that the goods are complements.
C)price elasticity of demand implies an inferior good.
D)income elasticity of demand implies a normal good.
E)income elasticity of demand implies an error in your calculation.

Question

Quizplus · Accepted Answer

Cross elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. A negative value indicates that as the price of one good increases, the demand for the other good decreases, which is characteristic of complementary goods.

A Negative Value for