Define Cross-Price Elasticity

question 166

Essay

Define cross-price elasticity.What does it mean if the cross-price elasticity is equal -3?
A.An increase in the price of the complementary good will lead to a greater proportional decrease in the quantity demanded of the product.
B.If the cross-price elasticity is -3,product A and B are complements.This means that a 1% increase in the price of product B will lead to a 3% decrease in the quantity demanded of product

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Definitions:

Private Acceptance

The genuine alignment of one's internal beliefs or attitudes with those of a group, without external pressure.

Dissenter

An individual who expresses disagreement or non-conformity with the prevailing opinions or practices.

Informational Influence

The effect of others' opinions and knowledge on an individual's beliefs, especially under conditions of uncertainty.

Deviant Accomplice

A person who assists in or encourages deviant behavior, diverging from societal norms or standards.