The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates
A) the price elasticity of demand for film
B) the price elasticity of demand for cameras
C) the price elasticity of supply for film
D) the price elasticity of supply for cameras
E) nothing, because the two goods fall into the broadly defined category of photographic equipment

Question

Quizplus · Accepted Answer

The percentage change in the quantity demanded of one good (in this case, film) divided by the percentage change in the price of another good (in this case, cameras) measures the cross-price elasticity of demand. This concept reflects how the demand for one product responds to a change in the price of another product. However, since the options provided do not include cross-price elasticity of demand, the closest relevant concept is the price elasticity of demand for film. This is because the question essentially asks how the demand for film changes in response to price changes, albeit indirectly through the price of cameras.

The Percentage Change in the Quantity Demanded of Film Divided