ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What does cross elasticity measure?
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Measures responsiveness of changes in quantity demanded to changes in price.
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Measures the responsiveness of the quantity demanded ofa good or service to a change in income.
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Measures the responsiveness of the quantity demanded of one good to changes in price of another good.
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None of the above
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Explanation:
Detailed explanation-1: -What is ‘Cross Elasticity of Demand’ Definition: The measure of responsiveness of the demand for a good towards the change in the price of a related good is called cross price elasticity of demand. It is always measured in percentage terms.
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