Question

The cross-price elasticity of demand measures the

absolute change in the quantity demanded of one good divided by the absolute change in the price of another good.

percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.

percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location.

percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Answer #1

Option D.

- Cross price elasticity of demand measures the change in the demand of one good with respect to the change in the price of its related good.
- It is usually calculated as the percentage change in quantity demanded of one good divided by the percentage change in the price of another good.
- If the price and quantity demanded move in same direction like substitute goods, then cross price elasticity of demand is said to be positive.
- If the price and quantity demanded move in different directions like complementary goods, then cross price elasticity of demand is said to be negative.

Cross Price Elasticity simply measures the percentage
change in quantity demanded of one good divided by the percentage
change in price of another good. For example, the enrollment of
college students at California state-funded community colleges
would probably fall slightly if the popular
California UC and CSU universities (e.g. UC Berkeley) lowered their
prices by 50 percent.
True or False?

Cross-price elasticity of demand is calculated as
the
total percentage change in quantity demanded divided by the total
percentage change in price.
percentage change in the price of good 1 divided by the percentage
change in the price of good 2.
percentage change in quantity demanded divided by the percentage
change in income.
percentage change in quantity demanded of good 1 divided by the
percentage change in the price of good 2.

The price elasticity of demand measures:
Select one:
a. the percentage change in quantity demanded of a good in
response to a one percentage change in
income
b. none of the above
c. the change in the number of units demanded of a good in
response to a one percentage change in
its price
d. the percentage change in quantity demanded of a good in
response to a one dollar change in its
price

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

Q8. Cross-price elasticity of demand is calculated as
the
A) percentage change in quantity demanded divided by percentage
change in price of a good.
B) percentage change in quantity demanded of one good divided by
percentage change in price of a different good.
C) percentage change in quantity sold divided by percentage
change in buyers' incomes.
Q.9. If the cross-price elasticity of demand for
computers and software is negative, this means the two goods
are
A) substitutes. B) complements. C)...

If the cross-price elasticity of demand between Good A and Good
B is 3, the price of Good B increases, and the price elasticity of
demand for Good B is inelastic, we can expect to see a ________
change in the quantity demanded for Good A.
a.positive, zero
b.positive, small
c.positive, large
d.negative, one-for-one negative,
e.infinite

Assume the price elasticity of demand for a good is –1.23. The
demand for this good is _______ which means the percentage change
in quantity demanded (in absolute value) is _______ the percentage
change in price (in absolute value).
Group of answer choices
elastic, larger than
elastic, smaller than
inelastic, smaller than
inelastic, larger than

A measure of the rate of percentage change of quantity demanded
with respect to price, holding all other determinants of demand
constant is
a.
Income elasticity of demand
b.
Own price elasticity of demand
c.
Price elasticity of market equilibrium
d.
Cross price elasticity of demand
The value of the income elasticity of demand coefficient for
Good X is given as 0.1. This means that
a.
as income increases by 10 percent, quantity demanded rises by 1
percent.
b.
as income...

The following table lists the cross elasticity of demand for
several goods, where the percentage quantity change is measured for
the first good of the pair, and the percentage price change is
measured for the second good.
Good Cross elasticity of demand
Air-conditioning units and kilowatts of electricity -0.34
Coke and Pepsi 0.63
High-fuel-consuming SUVs and gasoline -0.28
McDonald’s burgers and Harvey burgers 0.82
Butter and Margarine 1.54
1.Explain the sign of each of the cross elasticities. What does
it...

1. When elasticity of demand is equal to one and the change in
the quantity demanded and the change in price are exactly
proportional. This type of elasticity is described as ________.
A. elastic
B. inelastic
C. unitary elastic
2. What happens to total revenue (TR) if the price rises on a
product with demand that is price elastic?
A. Total revenue will rise.
B. Total revenue will remain the same.
C. Total revenue will fall.

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