If the cross-price elasticity of demand is -5,Good A and Good B are
A) inferior goods.
B) complements.
C) substitutes.
D) normal goods.
E) luxury goods.

Name: If the cross-price elasticity of demand is -5,Good A and Good B are A) inferior goods. B) complements. C) substitutes. D) normal goods. E) luxury goods.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

A negative cross-price elasticity of demand indicates that the two goods are complements, meaning that an increase in the price of one good leads to a decrease in the demand for the other good.

If the Cross-Price Elasticity of Demand Is -5,Good a and Good