What is the elasticity for a cross-price elastic complement good?A.Greater than 1B.Between 0 and 1C.Less than -1D.Between -1 and 0
Question
Solution 1
The correct answer is D. Between -1 and 0.
Cross-price elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good. If two goods are complements, then the cross-price elasticity of demand is negative, because as the price of one goo Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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Demand is unit elastic when the absolute value of the price elasticity of demand is:1 pointless than 1.0.equal to 1.greater than 1.