The effects on the demand for product A caused by a change in the price of product B is Called____________
Joint demand
cross-elasticity of demand
elasticity of supply
competitive demand
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The answer is cross elasticity of demand. All other kinds of demand can fall under it. The question is asking for the theory behind the difference in demand for a good caused by a change in price of another good and that is literally CROSS ELASTICITY OF DEMAND. Please review.
A and D are two different concepts which when put into practice create the effects called “Cross elasticity of demand...
Don’t forget, the question didnt say “Define” rathere, it requires the effect caused by something else...
So, the one and only correct answer there is B- Cross elasticity of demand.
the correct answer is B
The effects on the demand for product A caused by a change in the price of product B are referred
to as cross-price elasticity of demand. Cross-price elasticity measures how the quantity demanded of one good responds to a change in the price of another good. If the quantity demanded of product A increases in response to a decrease in the price of product B, the cross-price elasticity of demand is positive, indicating that the goods are substitutes. Conversely, if the quantity demanded of product A decreases in response to a decrease in the price of product B, the cross-price elasticity of demand is negative, indicating that the goods are complements.
The correct answer is d cus the higher the price of commodity A will lead to high demand of commodity B
correct answer should be D
competitive demand if there is an increase in the price of Guinness (commodity a) it will lead to an increase demand of harp beer (commodity b)
please read types of demand you'll see
