if two goods are substitutes, their cross - price elasticity of demand will be a) zero. b) negative. c) one…

if two goods are substitutes, their cross - price elasticity of demand will be a) zero. b) negative. c) one. d) positive.

if two goods are substitutes, their cross - price elasticity of demand will be a) zero. b) negative. c) one. d) positive.

Answer

Brief Explanations:

Cross - price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. For substitute goods, when the price of one good increases, the quantity demanded of the substitute good increases. So, the cross - price elasticity of demand for substitute goods is positive.

Answer:

D. positive