Question

If two goods are complements, then

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 1

Answer:

If two goods are complements, then

The cross-price elasticity may be a positive or negative value, depending on whether the goods are complements or substitutes.