Suppose price of pepper increases by 25% and as result quantity of salt increases by 4 %.
What is the cross-price elasticity demand between pepper and salt = ____
In this example, pepper and salt are ________ (complements or substitutes)
If complements, the cross price elasticity of demand between pepper and salt will be
a) negative
b) positive
c) less than 1
d) zero
e) greater than -1