Cross-Price Elasticity of Demand Is Calculated as the

question 237

Multiple Choice

Cross-price elasticity of demand is calculated as the

• A)percentage change in quantity demanded divided by percentage change in price of a good.
• B)percentage change in quantity demanded of one good divided by percentage change in price of a different good.
• C)percentage change in quantity sold divided by percentage change in buyers' incomes.
• D)percentage change in quantity supplied divided by percentage change in price of a good.

---

Definitions:

Efficient

The characteristic of a resource allocation that maximizes the total surplus received by all members of society.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.

Technological Advance

The introduction and application of new technologies and methods that improve productivity and efficiency.

Unemployment

A situation where individuals who are able and willing to work are unable to find jobs.