Cross Elasticity of Demand Measures the Responsiveness of the

question 38

Multiple Choice

Cross elasticity of demand measures the responsiveness of the

• A)demand for one good to changes in the demand for another good.
• B)demand for one good to changes in the price of another good.
• C)quantity demanded of one good to changes in the quantity demanded of another good.
• D)quantity demanded of one good to changes in the price of another good.
• E)b and d

---

Definitions:

Government Purchases

Expenditures by the government sector on final goods and services in a given period.

Resources

Assets or inputs used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Federal Government's Tax Revenues

The income received by the federal government from taxes which can include income taxes, corporate taxes, and other kinds of taxes.

Personal Income Taxes

These taxes are levied on individuals' income by governments, including wages, dividends, and interest earnings.