The cross-elasticity of demand for good X with respect to good Y is –0.5. What conclusion can be drawn from this?
- AGoods X and Y are complementary goods.
- BGoods X and Y are substitute goods.
- CGood X is an inferior good.
- DGood Y is an inferior good.
Economics 9708 · AS & A Level · Price elasticity of demand
The cross-elasticity of demand for good X with respect to good Y is –0.5. What conclusion can be drawn from this?