When the price of bread increases by 5 per cent, the quantity demanded of crackers increases by 2 per cent. The cross elasticity of demand between crackers and bread is:
A) 0.67.
B) 1.5.
C) 2.5.
D) 0.4.

Question

Quizplus · Accepted Answer

The Answer of When the price of bread increases by 5 per cent, the quantity demanded of crackers increases by 2 per cent. The cross elasticity of demand between crackers and bread is:
A) 0.67.
B) 1.5.
C) 2.5.
D) 0.4.

When the Price of Bread Increases by 5 Per Cent