Practice prompt · Q:economics-and-market-foundations/classify-complementary-good-001

Qualify a complementary relationship

Uses negative cross price direction without turning complementarity into a permanent bundle or transaction claim.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

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A supplied packet reports negative cross-price elasticity for cereal quantity with respect to milk price. Which conclusion is reviewable?

Choose the best answer. a The negative cereal-quantity response to milk price supports cereal as a complement to milk for the stated segment, use, range, and period; bundle design, realized sales, and reverse direction remain separate. b Because magnitude is below one, the goods are weak substitutes rather than complements. c Every cereal sale must include milk, so both sellers recognize revenue together.

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Answer: a

Choice a. Negative cross-price response supports scoped complementarity, not universal bundling or accounting consequences.