Which of the following statement(s) is/are correct?
[1] The cross elasticity of demand for complements is always positive.
[2] If two products are substitutes, their cross elasticity of demand is always negative.
[3] If two products are complements, their cross elasticity of demand will always be
negative.
[4] The cross elasticity of butter and margarine can be expected to be negative.
If two products are complements, their cross elasticity of demand will always be negative. All other statements are incorrect.
So, the correct answer is [3].
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