IF COMMODITIES X AND Y ARE SUBSTITUTE, THEIR CROSS ELASTICITY OF DEMAND WILL BE

• A. One
• B. positive ✓
• C. negative
• D. zero

The answer to the question is: B. positive

If commodities X and Y are substitutes, their cross elasticity of demand will be positive. This is because substitutes are goods that can be used in place of each other, so when the price of one substitute increases, the demand for the other substitute increases as well. As a result, the cross elasticity of demand between substitutes is positive, indicating that an increase in the price of one substitute leads to an increase in the quantity demanded for the other substitute.