Q377
If the goods are complementary like car and petrol, their cross elasticity is
A.
Negative
AnswerB.
Positive
C.
Zero
D.
Infinite
Answer: Option A
Solution
Answer: Option A
Solution:
If the goods are complementary like car and petrol, their cross elasticity is Negative. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.