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

Quizplus · Accepted Answer

A positive cross-price elasticity of demand means that as the price of good A increases, the demand for good B increases, indicating that they are substitutes.

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