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Lisa [10]
3 years ago
13

Complementary goods have a _______________ cross-price elasticity: as the price of one good increases, the demand for the second

good decreases.
Business
1 answer:
Maru [420]3 years ago
5 0

Answer:

negative

Explanation:

Complementary goods have a negative cross-price elasticity because the increase in price of one tends to a weak or fall in consumer demand of the second. For instance, a hike in petrol will lead to a  decrease in consumer demand for cars thereby giving rise to alternatives to these goods (most likely, there would be a surge in subway or rail patronage)

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