MCQOPTIONS
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| 1. |
If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that |
| A. | Cross price elasticity of demand is negative and both the products are complementary to each other |
| B. | Cross price elasticity of demand is negative and the goods are substitute |
| C. | Cross price elasticity is positive and the products are complementary to each other |
| D. | None of these |
| Answer» B. Cross price elasticity of demand is negative and the goods are substitute | |