Question #221322

If the price of good A falls and the quantity demanded of good B rises,

A. good B is an inferior good.
B. the cross elasticity of demand is positive.
C. the cross elasticity of demand is negative.
D. good A is an inferior good.

Expert's answer

C. the cross elasticity of demand is negative

This comes where a price fall is related to the increase in quantity demanded of the substitute product


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