Answer to Question #5786 in Economics of Enterprise for ravikiran
Increase from 20 Kg. to 25 Kg.
a) What is the cross elasticity of demand of good Y for good X?
b) Are goods X and Y compliments or substitutes?
Two goods that complement each other show a negative cross elasticity of demand: as
the price of good Y falls, the demand for good X rises.
So the goods are complements.
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