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Cross elasticity of demand between petrol and car?
  • a)
    Zero
  • b)
    Negative
  • c)
    Positive
  • d)
    Infinitive
Correct answer is option 'B'. Can you explain this answer?
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Cross elasticity of demand between petrol and car?a)Zerob)Negativec)P...
The cross elasticity of demand for complementary goods is negative. Examples of such goods are cars and petrol. The increase in price of cars decreases the demand for petrol and vice versa.
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Cross elasticity of demand between petrol and car?a)Zerob)Negativec)Positived)InfinitiveCorrect answer is option 'B'. Can you explain this answer?
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