If the cross-price elasticity between good X & Y is zero, we know the goods are:
A)independent.
B)complements.
C)inelastic.
D)substitutes.

Question

Quizplus · Accepted Answer

When the cross-price elasticity between two goods is zero, it implies that a change in the price of one good doesn't affect the demand for the other good. Therefore, the goods are independent of each other, and their demand or consumption doesn't depend on the price of the other.

If the Cross-Price Elasticity Between Good X & Y Is