Respuesta :
Answer:
The correct answer is: Zero, Option c.
Explanation:
The price elasticity of demand shows the change in the quantity demanded of a commodity due to a change in the price of the commodity.
The cross-price elasticity is the change in the quantity demanded of a product because of a change in the price of related good.
The cross-price elasticity is calculated by finding the ratio of proportionate change in quantity demanded and proportionate change in price.
Cross-price elasticity in this situation will be
= [tex]\frac{\% \Delta Qy}{\% \Delta Px}[/tex]
= [tex]\frac{0}{30}[/tex]
= 0
The cross-price elasticity is zero. This implies that the two goods have no relation.
