The Definition of Cross Elasticity of Demand for Two Products

question 179

Multiple Choice

The definition of cross elasticity of demand for two products X and Y is

• A)percentage change in quantity of X demanded/percentage change in quantity of Y demanded.
• B)percentage change in price of Y/percentage change in quantity of X demanded.
• C)percentage change in price of Y/percentage change in price of X.
• D)percentage change in quantity of X demanded/percentage change in price of Y.

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Definitions:

Taxable Income

The amount of an individual’s or corporation's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.

Fiscal Year-End

The fiscal year-end is the conclusion of a 12-month or 52-week period over which a company or organization measures its financial performance.

Automatic Extension

An automatic extension grants taxpayers additional time to file their tax returns without the need for an explanation.

Return

The document filed with the IRS that reports income, expenses, and other pertinent tax information. Returns are required by law to be filed annually for an individual or business with reportable income.