Question

what will be the cross price effect of substitute goods​

Answer 1

Cross price effect refers to the effect of change in the price of good X on the demand for good Y, when X and Y are related goods. Related goods are either complementary or substitute goods.

Answer 2

Answer:

A positive cross-price elasticity value indicates that the two goods are substitutes. For substitute goods, as the price of one good rises, the demand for the substitute good increases. For example, if the price of coffee increases, consumers may purchase less coffee and more tea.

Explanation:

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