Q.

If two commodities are complements, then their crossprice elasticity is-

A. zero
B. positive
C. negative
D. imaginary number
Answer» D. imaginary number
Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
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