Question

# The cross-price elasticity of demand between goods X and Y measures the responsiveness of the quantity...

The cross-price elasticity of demand between goods X and Y

 measures the responsiveness of the quantity of X demanded to changes in the price of Y. is the percentage change in the price of Y divided by the percentage change in the quantity of X demanded. is greater than zero if X and Y are substitutes. both a and c all of the above

Ans. c) Both a and c

The cross-price elasticity of demand between goods X and Y measures the responsiveness of the quantity of X demanded to changes in the price of Y. In other words, it refers to that the percentage change in the quantity of good X demanded divided by the percentage change in the price of good Y. when price of good Y increases, the demand for good X increases and when price of good Y decreases, demand for good X decreases then both goods are substitute and cross-price elasticity between good X and good Y is greater than zero

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