1
Q:
| A) the cross-price elasticity of demand will be positive | B) an increase in the price of one good will increase demand for the other |
| C) the cross-price elasticity of demand will be negative | D) both B & C |
Answer: D) both B & C
Explanation:
Explanation:
In economics, If two goods are complements, then the cross elasticity of demand is negative. That means a good's demand is increased when the price of another good is decreased. Conversely, the demand for a good is decreased when the price of another good is increased. It is opposite of substitute goods.
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