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


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

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.

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