The cross-price elasticity of demand for organic vegetables with respect to the price of non-organic vegetables is +1.2. This means that:
organic vegetables and non-organic vegetables are complementary goods.
a 10%10\%10% increase in the price of non-organic vegetables will lead to a 12%12\%12% increase in the quantity demanded of organic vegetables.
a 12%12\%12% increase in the price of non-organic vegetables will lead to a 10%10\%10% increase in the quantity demanded of organic vegetables.
organic vegetables are classified as luxury goods because the elasticity coefficient is greater than 111.
