The Cross Elasticity of Demand

question 282

Multiple Choice

The cross elasticity of demand

• A) means that an increase in the demand for one good leads to a decrease in demand for another good.
• B) measures how a change in the price of one good impacts the demand for another good.
• C) measures how a change in supply impacts the demand for the good.
• D) means that an increase in the price of one good leads to an increase in the price of another good.
• E) measures how a change in income impacts the demand for the good.

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Definitions:

Five Civilized Tribes

A collective term for five Native American nations—the Cherokee, Chickasaw, Choctaw, Creek (Muscogee), and Seminole—that were considered "civilized" by Anglo-European settlers during the 19th century because of their adoption of many colonial customs.

Seminole

A Native American people originally from Florida, known for their resistance against US forces during the Seminole Wars.

Force Act

1833 legislation, sparked by the nullification crisis in South Carolina, that authorized the president’s use of the army to compel states to comply with federal law.