Question

What does cross elasticity of demand measure?

Options

• Change in demand of a good due to its own price change

• Change in demand of a good due to a change in income

• Change in demand of one good due to a change in price of another good

• Change in supply due to technology change

Answer 1

Change in demand of one good due to a change in price of another good

Explanation:

Cross elasticity shows how demand for one product reacts when the price of a related product changes.​