When you change your quantity demanded of one good because of a change in price of another good,you are acting according to the principle of
A) price elasticity of demand.
B) cross-price elasticity of demand.
C) income elasticity of demand.
D) price elasticity of supply.
E) income elasticity of supply.

Question

Quizplus · Accepted Answer

The principle described in the question refers to the concept of cross-price elasticity of demand, which measures the responsiveness of the demand for one good to a change in the price of another good. By changing the quantity demanded of one good due to a change in the price of another, consumers are exhibiting cross-price elasticity.

When You Change Your Quantity Demanded of One Good Because