The percentage change in the demand for film divided by the percentage change in the price of cameras indicates _____
A)the cross-price elasticity of demand between film and cameras.
B)the cross-price elasticity of demand for photographs.
C)the price elasticity of demand for film.
D)the price elasticity of demand for cameras.
E)the income elasticity of demand between film and camera.

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. In this case, it's the response of film demand to changes in camera prices, which is exactly what cross-price elasticity of demand between film and cameras represents.

The Percentage Change in the Demand for Film Divided by the Percentage