Cross Elasticity of Demand Measures the Responsiveness of Changes in the Quantity

question 60

Multiple Choice

Cross elasticity of demand measures the responsiveness of changes in the quantity __________ of one good to changes in __________.

• A)demanded; the price of the same good
• B)demanded; income
• C)demanded; the price of another good
• D)supplied; the price of the same good

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Definitions:

Operations

The day-to-day activities involved in running a business, such as production, sales, and administration.

Residual Value

The estimated value that an asset will have at the end of its useful life, after depreciation has been deducted.

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an organization, beyond which it may be depreciated or disposed of.

Average Rate of Return

A financial ratio that measures the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.