Match each of the terms to their definition or description. Cross-Price Elasticity Elasticity Income elasticity Price Elasticity of Demand A. the effect that a change in price of one good has on the quantity demanded of another good. B. responsiveness of quantity demand to a change in price C. a measure of responsiveness D. the effect that a change in income has on quantity demand for a good
Match each of the terms to their definition or description.
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Cross-price elasticity: - Cross-price elasticity of demand measures the responsiveness of change in quantity demanded of one good due to the change in the price of other goods.
Therefore, cross-price elasticity is the effect that a change in the price of one good has on the quantity demanded of another good.
Hence option (A.) "the effect that a change in the price of one good has on the quantity demanded of another good." represents cross-price elasticity.
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