The cross-price elasticity of demand is a measure of how responsive the:
A) quantity demanded of a good is to a change in its own price.
B) price of one good affects the quantity demanded of another.
C) quantity demanded of a good is to a change in consumers' income.
D) sellers of a good are to a change in its price.

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good, indicating whether the goods are substitutes or complements.

The Cross-Price Elasticity of Demand Is a Measure of How