What Is the Formula for the Cross Elasticity of Demand

question 314

Multiple Choice

What is the formula for the cross elasticity of demand? The percentage change in the

• A) quantity demanded divided by the percentage change in the price of a substitute or complement.
• B) quantity supplied divided by the percentage change in price.
• C) quantity demanded divided by the percentage change in price.
• D) quantity demanded divided by the percentage change in income.
• E) equilibrium quantity demanded divided by the equilibrium quantity supplied.

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Definitions:

Retained Earnings

Retained Earnings refer to the portion of net income that a company keeps after paying out dividends to its shareholders, which is then reinvested in the business or used to pay off debt.

Prior Period

A term referring to the financial events or conditions from a previous accounting period.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash.

Stock Dividend

A dividend payment made to shareholders in the form of additional company shares rather than cash.