If the cross elasticity of demand is +2.0, this means that A the percentage chan

Question

If the cross elasticity of demand is +2.0, this means that


A the percentage change in quantity demanded of a product is 2 times the percentage change in price of some other product.

B if quantity demanded of a product fell by 1 percent, price of another product would fall by 2 percent.

c if price of one product was raised by 2 percent, quantity demanded of another product would fall by 2 percent.

D if price of one product was raised 2 percent, quantity demanded of another product would rise 2 percent.

E the percentage change in quantity demanded of a product is 2 times the percentage change in the price of that product.

Explanation / Answer

B if quantity demanded of a product fell by 1 percent, price of another product would fall by 2 percent.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.