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Can complement goods be elastic if they only have a negative value?

It says that a negative value is a compliment.
A positive value is a substitute.
However, if XED >1, then it is elastic. If XED <1 then it is inelastic.
Inelastic is therefore negative and elastic is positive.
I don't get the fact that if a compliment has a negative value, we can see that it can only be inelastic, but I feel like my reasoning is flawed. Please help?
Reply 1
Original post by liaente
It says that a negative value is a compliment.
A positive value is a substitute.
However, if XED >1, then it is elastic. If XED <1 then it is inelastic.
Inelastic is therefore negative and elastic is positive.
I don't get the fact that if a compliment has a negative value, we can see that it can only be inelastic, but I feel like my reasoning is flawed. Please help?

Positive Value = Substitute
Negative Value = Complement

Once you’ve worked out which one it is, ignore the minus sign and see if it is less than or greater than one

Eg: If you have a good with an elasticity of -2, this will be a complement. Then ignore the minus sign so that it is now 2. This is greater than 1, therefore is elastic

Hope that helps
Reply 2
Original post by Sam.T.
Positive Value = Substitute
Negative Value = Complement

Once you’ve worked out which one it is, ignore the minus sign and see if it is less than or greater than one

Eg: If you have a good with an elasticity of -2, this will be a complement. Then ignore the minus sign so that it is now 2. This is greater than 1, therefore is elastic

Hope that helps

Yes it helped me significantly! Thank you!!

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