ECONOMICS
ELASTICITY OF DEMAND
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Question
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Define Cross Elasticity of Demand
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XED measures the degree of responsiveness of demand for one good across other goods, ceteris paribus
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XED measures the degree of responsiveness of quantity demanded for one good to a change in the price of another good, ceteris paribus
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XED measures the degree of responsiveness of demand for one good to a change in the price of another good, ceteris paribus
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XED measures the degree of responsiveness of demand for one good to a change in its price, ceteris paribus
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Explanation:
Detailed explanation-1: -Cross elasticity of demand refers to the way that changes in the price of one good can affect the quantity demanded of another good. This relationship can vary depending on whether the two goods are substitutes, complements, or unrelated to each other.
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