Cross price elasticity measures
A)The change in quantity demanded for one good relative to a change in the price of another good.
B)How sensitive quantity demanded is to a change in price.
C)The change in quantity demanded when income changes.
D)How complements and substitutes differ from one another.

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. In other words, it measures the extent to which the quantity demanded of a good changes as the price of another related good changes.

Cross Price Elasticity Measures