A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as ___________.

Cross Elasticity of Demand

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Substitution Elasticity of Demand

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Complementary Elasticity of Demand

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Price Elasticity of Demand

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Solution

The correct option is A Cross Elasticity of Demand
A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as cross elasticity of demand. Cross elasticity of demand is calculated by dividing the proportionate change of quantity demanded of one commodity by the proportionate change of price of another commodity.

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