Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another good?
A) price elasticity.
B) income elasticity.
C) cross-price elasticity.
D) cross substitution elasticity.

Question

Quizplus · Accepted Answer

Cross-price elasticity measures the responsiveness of the quantity demanded of one good to a change in the price of another good. It is calculated as the percentage change in the quantity of one good demanded divided by the percentage change in the price of another good.

Which of These Measures the Responsiveness of the Quantity of One