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igomit [66]
3 years ago
13

For complements, cross price elasticity of demand is: a. ​ Positive b. ​ Negative c. ​ between zero and one only d. ​ zero.

Social Studies
1 answer:
STALIN [3.7K]3 years ago
6 0

Answer:

b. ​ Negative

Explanation:

The cross-price elasticity of demand refers to how the demand for a good should respond when the price of that good changes.  

In this, the substitutes and the complementary goods are considered

In the case of substitutes goods, it shows a positive relationship between the demand and the price of a good. So, the cross-price elasticity of demand is positive

Whereas in the case of the complementary goods, it shows an inverse relationship between the demand and the price of a good. So, the cross-price elasticity of demand is negative

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