Cross Elasticity of Demand Measures the

question 12

Multiple Choice

Cross elasticity of demand measures the

• A) percentage change in the price of one good when the price of a complement increases by 1 percent.
• B) dependence of the quantity demanded of one commodity on the quantity demanded of another.
• C) dependence of the quantity demanded of one commodity on changes in the prices of that commodity.
• D) sensitivity of the quantity demanded of one commodity to changes in the price of another.
• E) relative importance of the price elasticity of demand to the income elasticity of demand.