The cross-price elasticity of demand measures the
A) percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location.
B) absolute change in the quantity demanded of one good divided by the absolute change in the price of another good.
C) percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
D) percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
C
You might also like to view...
The Phillips curve shows the relationship between
a. the rate of inflation and the rate of unemployment. b. the rate of growth of real GDP and the rate of unemployment. c. real prices and real GDP. d. the rate of inflation and the rate of growth of real GDP.
The goal of liberalism is to
a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to improve the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.