The cross price elasticity of demand is (mathematically) the
A. percentage change in the quantity demanded of one good divided by the price of another good.
B. percentage change in the quantity supplied of one good divided by the price of another good.
C. percentage change in the quantity supplied of a good divided by the price of that good.
D. percentage change in the quantity demanded of a good divided by the price of that good.
Answer: A
You might also like to view...
An industry characterized by only a few firms in the market is called: a. a monopoly
b. monopolistic competition. c. an oligopoly. d. perfect competition.
Detailed studies indicate that, on balance, the Social Security retirement system
a. redistributes a substantial amount of income from the rich to the poor. b. redistributes a substantial amount of income from whites to blacks. c. is particularly advantageous to those with a shorter life expectancy. d. is not particularly advantageous to the poor due to their shorter life expectancy.
The production possibilities curve represents the set of all:
A. feasible combinations of goods that the economy can produce given that a nation's resources are fully employed. B. factors of production that can be used to manufacture goods and services. C. combinations of goods and services that can be used in the production of other goods and services. D. nonlinear forms of production in the economy.
The price elasticity of demand measures
A) changes in demand. B) how responsive market prices are to a change in demand. C) how responsive consumers are to a change in price. D) how responsive consumers are to a change in income.