Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

Question

Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

D. Zero

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Correct Answer :

D. Zero

If two goods are independent then cross-elasticity of demand is zero b/c as the price of one good changes, there will be no change in demand for the other good)

Comment

Answer 1

A. Negative

Answer 2

B. Positive

Answer 3

C. Infinite

Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

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