The Cross Elasticity of Demand

question 282

Multiple Choice

The cross elasticity of demand

• A) means that an increase in the demand for one good leads to a decrease in demand for another good.
• B) measures how a change in the price of one good impacts the demand for another good.
• C) measures how a change in supply impacts the demand for the good.
• D) means that an increase in the price of one good leads to an increase in the price of another good.
• E) measures how a change in income impacts the demand for the good.

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