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The cross-price elasticity of demand between goods X and Y measures the responsiveness of the quantity of X demanded to changes in the price of
The cross-price elasticity of demand between goodsXandY
- measures the responsiveness of the quantity ofXdemanded to changes in the price ofY.
- is the percentage change in the price ofYdivided by the percentage change in the quantity ofXdemanded.
- is greater than zero ifXandYare substitutes.
- bothaandc
- all of the above
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