WAEC - Economics (2017 - No. 6)
if the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are?
complements
substitutes
luxurious
inferior
ব্যাখ্যা
A positive cross-price elasticity value indicates that the two goods are substitutes.
Two goods that complement each other have a negative cross elasticity of demand: as the price of goodY rises, the demand for good X falls.