If the cross elasticity of demand is +2.0, this means that
A) the percentage change in quantity demanded of a product is 2 times the percentage change in price of some other product.
B) if quantity demanded of a product fell by 1 percent, price of another product would fall by 2 percent.
C) if price of one product was raised by 2 percent, quantity demanded of another product would fall by 2 percent.
D) if price of one product was raised 2 percent, quantity demanded of another product would rise 2 percent.
E) the percentage change in quantity demanded of a product is 2 times the percentage change in the price of that product.
Correct Answer:
Verified
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