The cross elasticity of demand is
A. the change in the price of one good divided by the change of quantity demanded of another good.
B. the percentage change in the price of one good divided by the percentage change in the price of another good.
C. the percentage change in the demand of one good divided by the percentage change in price of another good.
D. the percentage change in the quantity demanded of one good divided by the percentage change in the quantity demanded of another good.
Answer: C
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Most innovations and inventions have come from the R&D departments of large firms.
Answer the following statement true (T) or false (F)
The main idea of demand is that
A. sales increase at lower prices. B. price does not affect sales. C. medical products should be free. D. sales do not vary if prices change.
An increase in physical capital or a technological advance
A) raises the real wage rate. B) decreases the quantity of labor employed. C) shifts the production function downward. D) decreases demand for labor.
Additional economic growth should be pursued when:
A. scarcity exists. B. new technologies are discovered. C. the marginal costs of growth exceed the marginal benefits. D. the marginal costs of growth are less than the marginal benefits.