passwella.
Menu

JAMB Economics 2019 Question 29

Question 29

Elasticity

For two substitute goods, the cross elasticity of demand is

  1. A.infinity
  2. B.positive
  3. C.zero
  4. D.negative.
Show the answer and explanation

Answer: B (positive)

Explanation

If the price of one substitute rises, demand for the other rises, so cross elasticity is positive.