A cross-price elasticity value that is negative will always indicate goods that are substitutes.

Question

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A negative cross-price elasticity value indicates that two goods are inversely related, meaning that an increase in the price of one good results in an increase in demand for the other. This can occur for both substitute and complementary goods. Therefore, a negative cross-price elasticity value does not always indicate goods that are substitutes.

A Cross-Price Elasticity Value That Is Negative Will Always Indicate