If an economist wants to know how a change in the price of one good affects the quantity demanded of another good, she would use the:
A) cross-price elasticity of demand.
B) price elasticity of demand.
C) elasticity of supply.
D) income elasticity of demand.

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand measures the responsiveness of the quantity demanded for one good in relation to a change in the price of another good. This is exactly what the economist is looking to understand, making option A the correct choice.

If an Economist Wants to Know How a Change in the Price