Goods A and B have a positive cross-price elasticity of demand. This means goods A and B are:
A) normal.
B) substitutes.
C) complements.
D) inferior.

Name: Goods A and B have a positive cross-price elasticity of demand. This means goods A and B are: A) normal. B) substitutes. C) complements. D) inferior.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Goods A and B being substitutes means that an increase in the price of one leads to an increase in the demand for the other, resulting in a positive cross-price elasticity of demand.

Goods a and B Have a Positive Cross-Price Elasticity of Demand