Toothpaste and toothbrushes are complements, so the _____ elasticity of demand is _____.

Toothpaste and toothbrushes are complements, so the _____ elasticity of demand is _____.

a. cross; positive

b. income; negative

c. cross; negative

d. income; positive

Answer: c. cross; negative

This question is connected to the cross elasticity of demand between related products, which are the goods which consumers tend to of more often in the same conjunction. Toothpaste and toothbrushes constitute a pair of products as they are products within the same product category that are commonly utilized collectively.

Thus, the cross elasticity of demand is identified as the quantity of proportionate change in the quantity required for one product divided by the proportionate change in the price of another related product. For complements, however, this relationship is negative. If the price of toothbrushes increases customers will purchase fewer toothbrushes not only because they are will use less toothpaste but also because they are related products. On the other hand, if the prices of tooth brushes reduced then the tooth pastes will similarly be consumed in larger quantities. The calculated cross elasticity of negatives from this inverted direct proportionality of price and quantity in complementary goods implies that if the price of a good increases, the requirement for the connected good will reduce