The cross price elasticity of demand for a good is the percentage change in the quantity demanded in response to a given percentage change in
A)income.
B)the price of that good.
C)the price of another good.
D)the quantity demanded of another good.

Question

Quizplus · Accepted Answer

Cross price elasticity of demand measures the extent to which the quantity demanded of one good changes in response to a change in the price of another good. Therefore, the correct answer is C - the price of another good.

The Cross Price Elasticity of Demand for a Good Is