Suppose the cross elasticity of demand for products $A$ and $B$ is +3.6 and for products $C$ and $D$ is -5.4 What can you conclude about how products $A$ and $B$ are related? Products $\mathrm{C}$ and $\mathrm{D} ?$
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6, which is positive. This means that as the price of product A increases, the quantity demanded for product B also increases. Therefore, products A and B are related as substitute goods. ** Show more…
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