A cross-price elasticity of -1.2 indicates that the two goods under consideration are:
A)inferior.
B)elastically demanded.
C)complements.
D)substitutes.

Name: A cross-price elasticity of -1.2 indicates that the two goods under consideration are: A)inferior. B)elastically demanded. C)complements. D)substitutes.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

Cross-price elasticity for complements is negative: a price increase of one will lead to a decrease in demand for the other.

A Cross-Price Elasticity of -1