If a Lower Price for Good X Increases the Demand

question 277

Multiple Choice

If a lower price for good X increases the demand for good Y,the cross elasticity value for the two goods is

• A) negative.
• B) equal to zero.
• C) positive and less than one.
• D) positive and greater than one.
• E) possibly negative, positive, or zero, but there is not enough information to decide.