If goods X and Y are complements, then the cross price elasticity of demand will be
A) elastic.
B) greater than zero but less than 1.
C) negative.
D) positive.

Name: If goods X and Y are complements, then the cross price elasticity of demand will be A) elastic. B) greater than zero but less than 1. C) negative. D) positive.
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Question

Quizplus · Accepted Answer

Complementary goods have a negative cross-price elasticity of demand, as an increase in the price of one good leads to a decrease in the demand for the complementary good.

If Goods X and Y Are Complements, Then the Cross