If the quantity demanded of rice increases by 5% when the price of wheat increases by 20%, the cross-price elasticity of demand for rice would be
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1 mark, −0.25MicroeconomicsDemand theory and elasticityCross-price elasticity, substitutes and complementsEasyabout 1 min
JNU SSS 2014 Question 22: Demand theory and elasticity
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Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Cross-price elasticity, substitutes and complements, part of Demand theory and elasticity in Microeconomics.
How the demand for one good responds to the price of another.
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