The Elasticity Which Shows the Responsiveness of the Demand for a Good

question 21

Multiple Choice

The elasticity which shows the responsiveness of the demand for a good due to changes in the price of a related good is the:

• A) own price elasticity.
• B) income elasticity.
• C) log-linear elasticity.
• D) cross-price elasticity.

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Definitions:

US Dollar

The official currency of the United States, widely used as a standard unit of currency in international finance and trade.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

Exchange Rate

The worth of one currency when converting it into another currency.

Widget Costs

The expenses associated with the production or manufacture of a generic product, often used in economic examples or analyses.