Robert must always have cream in his coffee. For Robert, the cross price elasticity of demand for coffee and cream is
A) equal to 0.
B) negative.
C) positive.
D) impossible to determine without more information.

Question

Quizplus · Accepted Answer

The cross price elasticity of demand for complementary goods, like coffee and cream, is negative because an increase in the price of one leads to a decrease in the demand for the other.

Robert Must Always Have Cream in His Coffee