If pizza and beer are complementary goods,we can conclude that
A)the income elasticity of demand is positive.
B)their cross-elasticity of demand is positive.
C)both goods are inferior goods.
D)the income elasticity of demand is negative.
E)their cross-elasticity of demand is negative.

Question

Quizplus · Accepted Answer

Complementary goods have a negative cross-elasticity of demand because an increase in the price of one leads to a decrease in the demand for the other.

If Pizza and Beer Are Complementary Goods,we Can Conclude That