There is negative cross elasticity of demand in case of ________ goods.

substitute goods

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complementary goods

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unrelated goods

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inferior goods

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Solution

The correct option is B complementary goods
In case of complementary goods, negative cross elasticity of demand exists. This is because change in the price of one complementary good leads to the demand of the other complementary good to move in the opposite direction.

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Choose the correct option:

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There is negative cross elasticity of demand in case of ________ goods.

The correct option is B complementary goodsIn case of complementary goods, negative cross elasticity of demand exists. This is because change in the price of one complementary good leads to the demand of the other complementary good to move in the opposite direction.

The correct option is B complementary goods
In case of complementary goods, negative cross elasticity of demand exists. This is because change in the price of one complementary good leads to the demand of the other complementary good to move in the opposite direction.