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When cross elasticity of demand is a large positive number one...

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When cross elasticity of demand is a large positive number, one can conclude that

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Correct Answer: Option C
When cross elasticity of demand is a large positive number, one can conclude that the good is complement. Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.
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5 Comments
Safdar Hussain
Safdar Hussain 2 years ago
Correct option is C. two products are substitute goods
A positive cross elasticity of demand means that the demand for good A will increase as the price of good B goes up and vice versa. Hence, correct answer is option C not D
Eldanb Biliz
Eldanb Biliz 3 years ago
Go for explanation.
Saurav Gaurav
Saurav Gaurav 4 years ago
As per explanation option D is the right ans
Abdul Bari
Abdul Bari 7 years ago
Answer shows as option C and explanation says about option D
Abdul Bari
Abdul Bari 7 years ago
The answer shows as option C...which is the good is a substitute
but the explanation is correct.
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