When two goods are unrelated,
A) their cross price elasticity of demand will be infinity.
B) their cross price elasticity of demand will be 0.
C) their cross price elasticity of demand will be negative.
D) their cross price elasticity of demand will be positive.

Question

Quizplus · Accepted Answer

When two goods are unrelated, there is no substitute or complement relationship between them. As a result, a change in the price of one good will have no effect on the quantity demanded of the other good. This means that the cross price elasticity of demand will be 0.

When Two Goods Are Unrelated