1
Question
Cross elasticity of complementary goods is _______.
Cross elasticity of complementary goods is _______.
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Solution
The correct option is A negative
In
economics, a complementary good
or complement is a good with a negative cross elasticity of demand, in
contrast to a substitute good.
This 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.
In economics, a complementary good or complement is a good with a negative cross elasticity of demand, in contrast to a substitute good. This 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.
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