Why the answer is B? 11. If the cross-price elasticity between goods A and B is negative, we know the goods are:A. inferior goods.B. complements.C. inelastic.D. substitutes.

Cross elasticity refers to the responsiveness of change in quantity demanded of one commodity due to…

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11. If the cross-price elasticity between goods A and B is negative, we know the goods are:

Managerial Economics: A Problem Solving Approach

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Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

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Why the answer is B?

11. If the cross-price elasticity between goods A and B is negative, we know the goods are:
A. inferior goods.
B. complements.
C. inelastic.
D. substitutes.

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