change in the Utility of another commodity
change in the price of another commodity
change in the nature of another commodity
change in the size of another commodity
Answer is Right!
Answer is Wrong!
The correct answer is: B. change in the price of another commodity.
Cross demand is the change in the quantity demanded of a good or service that results from a change in the price of another good or service. For example, if the price of coffee increases, the demand for tea may increase, as people will switch to tea as a substitute.
The other options are incorrect because:
- A. change in the Utility of another commodity. Utility is the satisfaction or benefit that a consumer receives from consuming a good or service. The utility of a good or service is not affected by the price of another good or service.
- C. change in the nature of another commodity. The nature of a good or service is its physical characteristics, such as its size, shape, color, and taste. The nature of a good or service is not affected by the price of another good or service.
- D. change in the size of another commodity. The size of a good or service is its physical quantity. The size of a good or service is not affected by the price of another good or service.