Cross-elasticity of demand

Cross-elasticity of demand:

The receptiveness of demand to modifications in prices of associated goods is termed as cross-elasticity of demand (i.e., associated goods might be substitutes or complementary goods). In another words, it is the receptiveness of demand for commodity x to the modification in the price of commodity y.

1714_cross elasticity of demand.jpg

The relationship among x and y commodities might be substitutive as in the situation of tea and coffee or complementary as in the situation of ink and pen.

View Complete Question

Related Questions in Microeconomics

Q : Lower rates of return by financial

Financial assets will create lower rates of return to prospective investors while: (w) they become more liquid. (x) their prices go up. (y) interest rates increase. (z) default risks decrease. Hey

Q : Income elasticity of demand with small

The income elasticity of demand can be approximately computed if we identify the percentage change within the: (1) quantity of a good demanded yielded by a specified absolute change in income. (2) price generated through a specified change in quantity

Q : History of Industrial Unions I have a

I have a problem in economics on History of Industrial Unions. Please help me in the following question. Industrial unions historically tried to systematize all the workers in: (i) A Specific Company or broad industry. (ii) The United States. (iii) A specific craft or

Q : Resolving principal-agent problems I

I have a problem in economics on Resolving principal-agent problems. Please help me in the following question. Attempts to resolve the principal-agent problems among stockholders and top corporate managers (that is, CEOs) comprise: (i) Profit-sharing systems for the t

Q : Price elasticity of demand coefficient

In this demonstrated figure, there the price elasticity of demand coefficient is: (1) one at the midpoint. (2) greater than one in range a. (3) less than one in range b. (4) falling along with movements down along the demand curve. (5) All of the abov

Q : Price elasticity of demand among

The price elasticity of demand as in below illustrated figure for DVD games among prices of $20 and $30 is about: (w) 1.00. (x) 25. (y) 1/25. (z) 1/2.

Q : Marginal revenue and cost equality of

Pure competitors produce where P is = MC since: (w) their objective is community welfare, not profit. (x) this always allows them excess profits. (y) maximum profit needs that MR = MC. (z) they can set any price they desire

Q : Graphical explanation of production

The production possibilities frontier graphically demonstrates the: (i) Production limitations which confront the society. (ii) Benefits inherent in the capitalistic economy. (iii) Social selections available if technology is boundless. (iv) Structura

Q : Determine total revenue when price

When the parents of newborns are relatively insensitive to changes within the price of Pampers diapers, in that case while the price of Pampers increases, total revenue to: (w) consumer increases. (x) seller increases. (y) consumer de

Q : Buyers and sellers as in price-takers

Price-takers comprise buyers or sellers who are not capable to: (w) resist monopolistic exploitation. (x) influence the prevailing market price. (y) adjust the amounts they buy or sell. (z) make short-run economic profits.

Discover Q & A

Leading Solution Library

Avail More Than 1440466 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1960125
Asked

3,689

Active Tutors

1440466

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment