Question : The cross elasticity of demand assesses how responsively a certain good's quantity desired is to changes in its prices.
Option 1: Its complements but not its substitutes.
Option 2: It's a substitute but not its complement.
Option 3: Its substitutes and complements
Option 4: Neither its substitutes nor its complements
Correct Answer: Its substitutes and complements
Solution : The cross elasticity of demand assesses how responsively consumers purchase one good when the price of another one changes. It complements and substitutes for other commodities. Hence option c is the correct answer.
Question : The cross elasticity of demand between CocaCola and PepsiCola is ________ so Coke and Pepsi are ________.
Question : Cross elasticity of demand measures the responsiveness of quantity demanded to changes in:
Question : Which one is not the type of elasticity of demand?
Question : If the cross elasticity of demand between two goods is zero, it means the goods are:
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