If goods are complements, definitely their: a. income elasticity's are negative. b. income...
Question:
If goods are complements, definitely their:
a. income elasticity's are negative.
b. income elasticity's are positive.
c. cross elasticity's are positive.
d. cross elasticity's are negative.
Elasticity:
The idea of elasticity is used to ascertain the sensitivity of one variable to the percentage change in another variable. The elasticity types could be income elasticity, price elasticity, or cross-price elasticity.
Answer and Explanation: 1
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View this answerThe correct answer is option c. cross elasticity is positive.
The cross-price elasticity between two goods is ascertained by dividing the percentage...
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Complementary Goods in Economics: Definition & Examples
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Chapter 3 / Lesson 10
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What are complementary goods? See complementary goods examples and learn how demand is impacted. See the difference between substitute and complementary goods.
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