Asked by Ahmed Aldughaither on Jul 12, 2024
Verified
For substitutes,cross price elasticity of demand is:
A) Negative
B) Positive
C) between zero and one only
D) zero.
Cross Price Elasticity
A measure of how the demand for one product changes in response to a change in the price of another product, indicating substitutes or complements.
Substitutes
Goods or services that can replace each other in use, affecting demand when their prices or other attributes change.
Demand
The quantity of a product or service consumers are willing and able to purchase at various prices.
- Determine the function of cross-price elasticity in identifying the interrelation between products.
Verified Answer
Learning Objectives
- Determine the function of cross-price elasticity in identifying the interrelation between products.
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