The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
A) its complements but not its substitutes.
B) its substitutes but not its complements.
C) its substitutes and its complements.
D) neither its substitutes nor its complements.

Question

Quizplus · Accepted Answer

The cross elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good, including both substitutes and complements.

The Cross Elasticity of Demand Measures the Responsiveness of the Quantity