Asked by Celeste Machado on Jun 09, 2024
Verified
Cross-price elasticity of demand measures how
A) the price of one good changes in response to a change in the price of another good.
B) the quantity demanded of one good changes in response to a change in the quantity demanded of another good.
C) the quantity demanded of one good changes in response to a change in the price of another good.
D) strongly normal or inferior a good is.
Cross-Price Elasticity of Demand
A measurement of how the quantity demanded of one good responds to a change in the price of another good, indicating whether they are substitutes or complements.
- Understand the concept and implications of cross-price elasticity of demand.
Verified Answer
AZ
Angelica ZhengJun 12, 2024
Final Answer :
C
Explanation :
Cross-price elasticity of demand measures the responsiveness of the quantity demanded for one good in response to a change in the price of another good.
Learning Objectives
- Understand the concept and implications of cross-price elasticity of demand.
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