Cross-Price Elasticity of Demand Measures

question 129

Multiple Choice

Cross-price elasticity of demand measures:

• A) how much the quantity demanded of one good changes in response to a change in the price of a different good.
• B) how much the quantity demanded of one good changes in response to a change in its price.
• C) the magnitude of the shift in demand for a good in response to a change in its price.
• D) how much the quantity demanded of a good changes in response to a change in consumers' incomes.

---

Definitions:

European Commission

An institution of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day business of the EU.

Exxon And Mobil

Refers to the merger between Exxon and Mobil, two major oil companies that combined in 1999 to form ExxonMobil, the largest privately owned oil company in the world.

Horizontal Merger

A business consolidation that occurs between companies operating in the same industry, often aiming to increase market share, reduce competition, or achieve economies of scale.

Staples

Basic or essential items that are regularly used and replenished, such as food, clothing, and household goods.