Concept:Cross-elasticity of demand measures how the demand for one product responds to a change in the price of another product.
Explanation:When the price of product B changes, the quantity demanded of product A may increase or decrease.
This happens because the two products may be related as substitutes or complements.
The relationship is called cross-elasticity of demand.
It is calculated using the formula:
EAB=% change in price of B% change in quantity demanded of AJoint demand refers to goods that are used together, such as cars and fuel.
Competitive demand refers to substitute goods that compete with each other.
However, the specific term for the effect of a price change of B on the demand for A is cross-elasticity of demand.
Answer:B. Cross-elasticity of demand