Suppose that when the price of good X changes, the quantity of good Y demanded remains the same. The cross price elasticity of demand is
A) zero.
B) positive.
C) negative.
D) either positive or negative.

Question

Quizplus · Accepted Answer

If the quantity of good Y demanded remains the same when the price of good X changes, it means that the two goods are not related, and there is no substitution effect. Therefore, the cross price elasticity of demand is zero.

Suppose That When the Price of Good X Changes, the Quantity