If commodities X and Y are substitute, their cross elasti...
If commodities X and Y are substitute, their cross elasticity of demand will be
One
positive
Negative
Zero
Correct answer is B
Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. If two goods are substitutes, an increase in the price of one will lead to an increase in demand for the other, and vice versa. Therefore, the cross elasticity of demand for substitutes is positive.
In which of the following ways has inflation adversely affected your country’s economy? ...
In a perfect market, price and quantity to be bought are determined by the ...
The rural area of West Africa lack industries because ...
Gross National Product (GNP) less depreciation is known as ...
Which of the following is NOT a type of business ownership? ...