Introduction to Economics 1 Deneme Sınavı Sorusu #1263308

"The cross-price elasticity of demand..........."

Which of the following best completes the sentence above?


has price elasticity that is the same along the whole demand curve

varies depending on whether the good is a luxury or necessity good for the consumer

is computed as the price of a good multiplying with the quantity sold

is a measure of how much the quantity demanded of one good responds to a change in the price of another good

measures the responsiveness of demand to income changes.


Yanıt Açıklaması:

The cross-price elasticity of demand is a measure of how much the quantity demanded of one good responds to a change in the price of another good. when the price of a good changes, the quantity demanded of related goods also changes. Two goods are either substitute to each other or they are complement each other. If the price increase in one good (good X) causes consumers to use other good (good Y) in place of this good, we say that these two goods (X and Y) are substitutes for each other. Substitutes are goods that are generally used in place of one another. Concerning the substitute goods, a price increase in good X leads to quantity demanded of good Y to increase. Goods have also complementary relationship. Complements are goods that are typically used together

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