The cross-price elasticity of demand between good A and good B is positive. Are good A and good B complements or substitutes?
Cross price elasticity of demand is the relationship between two type of goods that whether they are substitutes are complements to each other
Substitutes are those goods which can replace each other
For example tea and coffee
Complements are those good which complete each other
For example pen and paper
If the value of cross price elasticity of demand is positive then the two goods are said to be substitute to each other and if it is negative then the two goods are complements to each other
Answer is substitutes
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