Cross elasticity of demand (XED)
- Created by: Jade
- Created on: 20-11-12 19:08
Other questions in this quiz
2. A television and a DVD player are?
- Complements
- Substitutes
- Neither complements nor substitutes
3. What is cross elasticity of demand?
- The responsiveness of demand for one product in relation to a change in the price of another product.
- The responsiveness of a change in price of one product in relation to a change in supply of another product.
- The responsiveness of a demand of one product in relation to a change in demand of another product.
4. Where products are good or close substitutes, the value of XED will be ______ than if they are only modest substitutes.
- Higher
- Lower
- The same
5. Cross elasticity of demand is measured by which formula?
- % change in price of product B/ % change in quantity demanded of product A
- % change in quantity demanded in product A/% change in price of product B
- % change in price of product A/ % change in quantity demanded of product B
Comments
No comments have yet been made