Why Lipstick Isn't as Useful as an Economic Barometer As It Used to Be The "lipstick index" is a term coined by former Estee Lauder chairman Leonard Lauder, who saw women use lipstick in place of costlier cosmetics following the bursting of the dot-com bubble. The lipstick index's reliability is being questioned with the growing popularity of other beauty products. The last recession helped to spur growth in the nail color and care category as women tightened spending and turned to more at-home nail care, in lieu of visiting the salon. Source: cnbc.com, February 9, 2019 What does the news clip imply about the cross elasticity of demand for lipstick with respect to the price of costlier items? Would the income elasticity of demand for at-home nail care and salon visits be greater or less than 1? Explain. in 9 on 10 on 11 The cross elasticity of demand for lipstick with respect to the price of costlier cosmetics is O A. positive because lipstick and costlier cosmetics are complements O B. positive because lipstick and costlier cosmetics are substitutes C. positive because lipstick and costlier cosmetics are normal goods O D. negative because lipstick and costlier cosmetics are