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18 August, 18:16

The cross-price elasticity of demand is A. the percentage change in quantity demanded divided by the percentage change in price. B. the percentage change in quantity supplied divided by the percentage change in price. C. the percentage change in quantity demanded of one good divided by the percentage change in the price of another good. D. the percentage change in quantity demanded divided by the percentage change in income. E. the percentage change in quantity demanded of one good divided by the percentage change in the quantity of another good.

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  1. 18 August, 21:15
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    The answer is C

    Explanation:

    The cross-price elasticity of demand is the percentage change in quantity demanded of one good (good A) divided by the percentage change in the price of another good (good B.)

    The two goods can either be substitute or complement.

    If the cross-price elasticity of demand is positive, the two goods are substitute goods

    And If the cross-price elasticity of demand is negative, the two goods are complementary goods
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