Cross -price elasticity of demand measures
A) the percentage change in the price of a product due to a change in the quantity demanded of a related product.
B) the percentage change in the quantity demanded of a product due to a change in the price of a related product.
C) the rate at which firms can adjust the price of their goods when competitors adjust the price of their goods.
D) the responsiveness of quantity supplied to changes in quantity demanded.

Question

Quizplus · Accepted Answer

Cross-price elasticity of demand measures the percentage change in the quantity demanded of one product in response to a percentage change in the price of another related product. This concept is used to analyze the demand relationship between complementary goods and substitute goods.

Cross -Price Elasticity of Demand Measures