The Cross Elasticity of Demand Is Calculated as the Percentage

question 97

Multiple Choice

The cross elasticity of demand is calculated as the percentage change in the

• A) quantity demanded of one good divided by the percentage change in the price of another good
• B) price of one good divided by the percentage change in the quantity demanded of another good.
• C) quantity demanded of one good divided by the percentage change in the quantity demanded of another good.
• D) price of one good divided by the percentage change in the price of another good.

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Definitions:

Marginal

Referring to the change in an outcome resulting from a one-unit increase in an input or variable.

Alternatives

Different options or choices available in a given situation or for a particular problem.

Consumer Satisfaction

The measure of how products and services provided by a company meet or surpass a customer's expectation.

Marginal Cost

The increase in cost resulting from the production of one additional unit of output.