Multiple Choice
-Refer to the graphs above to answer this question.Suppose that the price of nuts decreases from P1 to P2 and the demand curve for chocolates shifts to the right from D1 to D2.What can be said about the cross-elasticity of demand for nuts and chocolates and their relationship?
A) The cross-elasticity of demand coefficient between nuts and chocolates is negative and nuts and chocolates are substitutes.
B) The cross-elasticity of demand coefficient between nuts and chocolates is negative and nuts and chocolates are complements.
C) The cross-elasticity of demand coefficient between nuts and chocolates is positive and nuts and chocolates are complements.
D) The cross-elasticity of demand coefficient between nuts and chocolates is positive and nuts and chocolates are substitutes.
Correct Answer:

Verified
Correct Answer:
Verified
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