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The sensitivity of the quantity demanded of Cola B to a change in the price of Cola A is

known as

O income elasticity
O cross-price elasticity
O own-price elasticity
O product elasticity

User ASpencer
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Answer:

The sensitivity of the quantity demanded of Cola B to a change in the price of Cola A is known as cross-price elasticity. Cross-price elasticity measures the responsiveness of the demand for one good to a change in the price of another good. In this case, Cola B is the good whose demand is affected by a change in the price of Cola A. Cross-price elasticity can be calculated by taking the percentage change in the quantity demanded of Cola B and dividing it by the percentage change in the price of Cola A. This measure is useful for companies to determine the impact of changes in prices of related goods on the demand for their products.

User Harshal Pandya
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