GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The % change in demand for a product A divided by the % change in price of product B indicates the degree of
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Price Elasticity of Demand
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Cross Elasticity of Demand
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Ionic Elasticity of Demand
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Advertising Elasticity of Demand
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Explanation:
Detailed explanation-1: -Cross Price Elasticity of Demand measures the relationship between the price and demand, i.e., a change in quantity demanded by one product with a difference in the cost of the second product. If both products are substitutes, it may show a positive cross elasticity of demand.
Detailed explanation-2: -Cross demand from the economic point of view measures the responsiveness of the change in quantity demand towards the change in price of another commodity.
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