Cross-Price Elasticity of Demand Measures the Response in the

question 119

Multiple Choice

Cross-price elasticity of demand measures the response in the

• A) price of a good to a change in the quantity of another good demanded.
• B) income of consumers to the change in the price of goods.
• C) quantity of one good demanded when the quantity demanded of another good changes.
• D) quantity of one good demanded to a change in the price of another good.

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Definitions:

Production Possibilities Frontier

A graph that shows the highest production levels of two products, based on available resources and various factors.

Trade-offs

The idea of sacrificing one positive aspect or perk to obtain another that is considered to be more desirable.

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.

Efficient

Achieving maximum productivity with minimum wasted effort or expense; in economics, an allocation of resources in which it is impossible to make any one individual better off without making someone else worse off.