[Economics HW] If goods A and B have a cross elasticity of demand that is positive, this is evidence that?

Question

Please help me out with my econ HW!

If goods A and B have a cross elasticity of demand that is positive, this is evidence that goods A and B are __________ goods.

A. complementary

B. substitute

C. normal

D. inferior

Greatly appreciate your generous help!

Answer 1

Although my other friend also gave the reference of a website, but according to me the answer is:

"A. Complementary"

Answer 2

B. substitute

http://en.wikipedia.org/wiki/Cross_elast...

Answer 3

The correct answer is :B. substitute

[Cross price elasticity of demand positive means that if the price of one good goes up, the demand for the other good goes up and if the price of one good goes down the price of the other good ges dow. This happens because of substitution of consumption in favor of the good which becomes cheaper: when price of good A increases, good B becomes relatively cheap and hence the demand for good B rises at the cost of reduction in demand for good A.]