When Two Goods Are Substitutes for Each Other,what Will the Cross-Price

question 66

Multiple Choice

When two goods are substitutes for each other,what will the cross-price elasticity be?

• A) The cross-price elasticity will initially be positive but eventually become negative.
• B) It is unaffected by goods being substitutes.
• C) It will be zero.
• D) It will be positive.
• E) It will be negative.