Answer to Question #75796 in Microeconomics for bryan

Question #75796
If the cross elasticity of demand between tablets and smart phones is 2,0, this implies that these goods are:
a) Luxuries.
b) Complements.
c) Necessities.
d) Substitutes.
1
Expert's answer
2018-04-11T05:09:11-0400
If the cross elasticity of demand between tablets and smart phones is 2,0, this implies that these goods are substitutes, because the cross elasticity is positive.
So, the correct answer is
d) Substitutes.

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