Asked by
Roberto Arreguin
on Oct 26, 2024
Verified
The percentage change in quantity demanded of one good or service divided by the percentage change in the price of a related good or service is the _____ of demand.
A) price elasticity
B) quantity elasticity
C) income elasticity
D) cross-price elasticity
Cross-Price Elasticity
A measure of how the quantity demanded of one good responds to a price change of another good.
Quantity Demanded
The total amount of a good or service that consumers are willing to purchase at a given price.
- Familiarize oneself with the concept of cross-price elasticity of demand and how it assists in determining the relationship between two goods (substitutes or complements).
Verified Answer
AO
Learning Objectives
- Familiarize oneself with the concept of cross-price elasticity of demand and how it assists in determining the relationship between two goods (substitutes or complements).