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    Question

    Cross price elasticity of complementary goods is

    ?
    A >1 Correct Answer Incorrect Answer
    B <1 Correct Answer Incorrect Answer
    C 1 Correct Answer Incorrect Answer
    D <0 Correct Answer Incorrect Answer

    Solution

    Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.

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