The cross elasticity of demand is
A) the percentage change in the demand of one good divided by the percentage change in price of another good.
B) the change in the price of one good divided by the change of quantity demanded of another good.
C) the percentage change in the quantity demanded of one good divided by the percentage change in the quantity demanded of another good.
D) the percentage change in the price of one good divided by the percentage change in the price of another good.
A
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If the natural unemployment rate is 5 percent, the actual unemployment rate is 8 percent, and potential GDP is $15 trillion, then according to Okun's Law, real GDP is
A) $13.8 trillion. B) $15.9 trillion. C) $13.05 trillion. D) $14.25 trillion. E) $14.1 trillion.
If a bank receives a deposit of $3,000 and loans out $2,000 . what changes will occur on the bank's balance sheet (after all checks involved with the loan are cleared)?
a. Reserves decrease by $3,000 . total assets decrease by $1,000 . and total liabilities increase by $3,000. b. Reserves increase by $1,000 . total assets increase by $2,000 . and total liabilities increase by $3,000. c. Reserves increase by $3,000 . total assets by increase $3,000 . and total liabilities increase by $3,000. d. Reserves increase by $3,000 . total assets by increase $2,000 . and total liabilities decrease by $3,000. e. Reserves increase by $1,000 . total assets increase by $3,000 . and total liabilities increase by $3,000.