Question : When all other factors influencing demand are held constant, the cross elasticity of demand quantifies how much the quantity required of a good responds to changes in the .
Option 1: Income of the consumer
Option 2: Price of the commodity
Option 3: Price of the other commodity
Option 4: None of the above
Correct Answer: Price of the other commodity
Solution : The cross elasticity of demand measures how much a good must be produced in reaction to changes in the price of the other item, holding all other demand-inducing variables constant. Hence option c is the correct answer.
Question : Which one is not the type of elasticity of demand?
Question : Cross elasticity of demand measures the responsiveness of quantity demanded to changes in:
Question : Which of the following is a characteristic of demand elasticity?
Question : The percentage change in _______ divided by the percentage change in _______ is the income elasticity of demand.
Question : Other things being equal, a decrease in the quantity demanded of a commodity can be caused by:
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