McqMate
| Q. |
If two commodities are complements, then their crossprice elasticity is- |
| A. | zero |
| B. | positive |
| C. | negative |
| D. | imaginary number |
| Answer» D. imaginary number | |
|
Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products. |
|
View all MCQs in
Economics (GK)No comments yet