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What does cross elasticity of demand measure? Cross elasticityof demand measures how responsive the quantity...

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Economics

What does cross elasticity of demand measure? Cross elasticityof demand measures how responsive the quantity demanded of one goodis to changes in the quantity demanded of another good. price ofone good is to changes in the aggregate price level. price of onegood is to changes in the price of another good. quantity demandedof one good is to changes in the price of another good. Suppose thecross elasticity of demand between Motrin and aspirin is

1.81

. What can you say about Motrin and aspirin? They are substitutegoods. They are luxury goods. They are complementary goods. Theyare inferior goods. They are normal goods.

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