What is the term for the responsiveness of the change in the quantity demanded of product A to a change in the price of product B?
A)Income elasticity.
B)Cross elasticity of demand.
C)Price elasticity of demand.
D)Supply elasticity.

Question

Quizplus · Accepted Answer

The term for the responsiveness of the change in the quantity demanded of product A to a change in the price of product B is called Cross elasticity of demand. It measures the percentage change in the quantity demanded of product A that results from a percentage change in the price of product B. This is different from Price elasticity of demand (option C), which measures the responsiveness of the quantity demanded of product A to a change in its own price. Income elasticity (option A) measures the responsiveness of the quantity demanded of product A to a change in income. Supply elasticity (option D) measures the responsiveness of the quantity supplied of a product to a change in its price.

What Is the Term for the Responsiveness of the Change