The cross -price elasticity of demand measures the O A. B. O C. 0 D, percentage

Question

The cross -price elasticity of demand measures the O A. B. O C. 0 D, percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. percentage change in the price of one good divided by the percentage change in the quantity demanded of another good percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location. absolute change in the quantity demanded of one good divided by the absolute change in the price of another good.

Explanation / Answer

The right answer is option A

Explanation: Cross-price elasticity of demand measures the responsiveness of demand of one good for changes in the price of another good. Therefore, cross-price elasticity is determined by dividing the % change in the quantity demanded of one good by the % change in the price of another good.

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