Krugman's Economics For The Ap® Course
Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
Question
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Chapter 48, Problem 1MCQ
To determine

The result if the cross-price elasticity of demand is negative between two goods.

Expert Solution & Answer
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Explanation of Solution

If the cross-price elasticity of demand is negative between two goods then in this situation, two goods are complements because both goods are used together and if price of one complement increases it will affect the demand of its another complement.

Therefore, the correct option is b.

Economics Concept Introduction

Introduction:

Complementary goods are the goods which are valuable to each other and customers use these goods in conjunction with another such as car and petrol.

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