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3 years ago

The cross-price elasticity of demand measures how sensitive purchases of a specific product are to changes in

Business

2 answers:

Usimov [2.4K]3 years ago

4 0

Answer:

The cross price elasticity of demand measure how sensitive is the demand of the product X is due to the change in the price of the product Y.

The formula is stated as: Percentage change in the quantity demanded of product X / Percentage change in the price of product Y.

Further, cross price elasticity can be divided into Positive, negative and zero.

Hope this clears things up.

Good Luck.

MrRa [10]3 years ago

4 0

Answer:

the price of a similar substitute or complementary product.

Explanation:

In microeconomics, the cross price elasticity of demand measures how the change in the price of a certain product will affect the quantity demanded for a similar substitute or complementary product whose price doesn't change.

In order to measure the cross price elasticity of demand there must exist a previous relationship between the prices and quantities demanded of the products or services. E.g. a change in the price of movie tickets does not affect the quantity demanded of gasoline, since there is no relationship between them.

You can measure cross price elasticity of substitute products, e.g. coffee and tea, or complementary products, e.g. coffee and sugar. Actually the cross price elasticity is useful for determining how closely related complementary or substitute products are.

the formula for cross price elasticity = % change in quantity demanded of product Y / % change in price of product X.

A negative cross price elasticity means that the products are complementary, while a positive cross price elasticity means that the products are substitutes.

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Complete question reads;

Katie, a salesperson for Sol Computers, is faced with an objection from one of her prospects. The prospect says that the graphics of the computers do not meet his requirements. Katie listens to the objection and makes it known to her prospect that she has received the message. According to the LAARC method, which of the following should Katie do next?

(A) Continue listening

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Answer:

(B) Assess the objection

Explanation:

Remember, the LAARC method an acronym fully means;

Step 1: LISTEN,

Step 2: ACKNOWLEDGE,

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Step 4: RESPOND,

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3 years ago

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Gnesinka [82]

Answer:

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Explanation:

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