Final answer:
The statement is true because a more negative cross elasticity coefficient indicates stronger complementarity, meaning that the goods are more interdependent in consumption.
Step-by-step explanation:
The statement 'The larger the negative cross elasticity coefficient, the greater is the complementarity between two products' is true. This is because, in economics, cross-price elasticity of demand measures how the quantity demanded of one good (Good A) changes in response to a price change of another good (Good B). Goods that are complements will have a negative cross-price elasticity, meaning that if the price of one good increases, the demand for its complement decreases. The more negative the cross elasticity coefficient, the stronger the complementarity, as consumers are less likely to purchase one without the other. For example, if coffee and sugar are complements, an increase in the price of sugar would mean a reduced demand for coffee, reflecting their complementary relationship.