VAE-0028
QUESTION
Cross demand refers to change in demand due to change in?
OPTIONS
(A) Income of the consumer
(B) Prices of related goods
(C) Price of a commodity
(D) All of the above
ANSWER
(B) Prices of related goods
EXPLANATION
Cross demand describes how the demand for one commodity changes when the price of a related commodity, such as a substitute or complement, changes. Changes caused by the consumer's income refer to income demand, while changes caused by the commodity's own price refer to ordinary price demand. Therefore, option (B), prices of related goods, is correct.
Question Navigator
Veterinary and Animal Husbandry Extension Education · 104 Questions
28
/
104
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104