If two goods are complementary goods,then
A)The cross-price elasticity sign will be negative.
B)The cross-price elasticity sign is not important.
C)The cross-price elasticity sign will be positive.
D)The cross-price elasticity will be greater than 1.

Question

Quizplus · Accepted Answer

Complementary goods are goods that are usually consumed together, such as bread and butter. The cross-price elasticity of demand between two complementary goods will be negative, indicating that an increase in the price of one good will lead to a decrease in the demand for the other good. Conversely, a decrease in the price of one good will lead to an increase in the demand for the other good.

If Two Goods Are Complementary Goods,then