Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-A measure of the responsiveness of quantity supplied to changes in price is known as _____.

A) cross-price elasticity
B) price elasticity of demand
C) price elasticity of supply
D) income elasticity
E) point elasticity