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)nothing because the two goods fall into the broadly defined category of photographic equipment

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand measures how the quantity demanded of one good (film) responds to a change in the price of another good (cameras).

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