Question

What does the sign​ (positive/negative) of the cross elasticity of demand tell us about the relationship between two​ goods? If the cross elasticity of demand for a hot dog with respect to the price of a burger is​ positive, then hot dogs and burgers are ________.​

Answer 1

substitutes

Step-by-step explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good X to changes in price of good Y.

Cross price elasticity = percentage change in quantity demanded/ percentage change in price

If the cross price elasticitiy is negative, the goods are complements.

If the cross price elasticitiy is postive, it means the goods are substitutes.

Substitutes goods are goods that can be demanded for in place of each other.

Complement goods are goods that are demanded for together.

I hope my answer helps you