Asked by
Madison Dowden
on Oct 26, 2024
Verified
If the cross-price elasticity of demand between hamburgers and cheese is positive,these two goods must be complements.
Cross-price Elasticity
A measure of how the quantity demanded of one good responds to a change in the price of another good, represented as a ratio.
Complements
Goods or services that are used together, where the consumption of one enhances the use or value of the other.
- Gain an understanding of the notions of income elasticity of demand and cross-price elasticity of demand, and their implications for goods being designated as normal, inferior, substitutes, or complements.
Verified Answer
JG
Learning Objectives
- Gain an understanding of the notions of income elasticity of demand and cross-price elasticity of demand, and their implications for goods being designated as normal, inferior, substitutes, or complements.