Question
If two commodities are complements, then their cross-price elasticity is
Answer: Option D
Answer: (d)
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good.
It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in the price of the second good.
A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
Was this answer helpful ?
Answer: (d)
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good.
It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in the price of the second good.
A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution