Good X becomes cheaper to produce, decreasing its price. As a result, the demand for good  Y increases. What can you say about the cross-price elasticity between the two goods?  Moreover, discuss whether the two goods are substitutes, complements or neither.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
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Good X becomes cheaper to produce, decreasing its price. As a result, the demand for good  Y increases. What can you say about the cross-price elasticity between the two goods?  Moreover, discuss whether the two goods are substitutes, complements or neither.

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