ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: If the cross-price elasticity of demand for goods X and Y is negative, this means the two goods are d. complements.

Detailed explanation-2: -The cross elasticity of demand for substitute goods is always positive because the demand for one good increases when the price for the substitute good increases. Alternatively, the cross elasticity of demand for complementary goods is negative.

Detailed explanation-3: -Answer and Explanation: If the cross-price elasticity of demand between two goods is negative, then the goods are considered to be complementary goods.

Detailed explanation-4: -A positive cross-price elasticity of demand between two products exhibits that the products are substitutes. This scenario implies that the price of one product has a positive relationship with the quantity demanded of another product.

Detailed explanation-5: -In case the commodities X and Y are a perfect substitute for one another, the Cross elasticity of demand will be Infinity. Therefore, Positive Cross elasticity of demand indicates that a change in a commodity will change the demand for another commodity in the same direction.