The correct answer is: A. a-2, b-4, c-1, d-3
a. Cross demand is the change in the quantity demanded of a given commodity in response to the change in the price of another commodity.
b. The elasticity of demand for product will be higher the more available are substitutes for that product.
c. The law of demand indicates a negative relationship between the price of a commodity and the quantity demanded.
d. The law of demand states that when price falls demand rises.
Here is a brief explanation of each option:
a. Cross demand is the change in the quantity demanded of a given commodity in response to the change in the price of another commodity. For example, if the price of coffee increases, the demand for tea may increase, as people will switch to tea as a substitute for coffee.
b. The elasticity of demand for product will be higher the more available are substitutes for that product. This is because if there are many substitutes available, consumers will be more likely to switch to another product if the price of one product increases.
c. The law of demand indicates a negative relationship between the price of a commodity and the quantity demanded. This means that, all other things being equal, if the price of a product decreases, the quantity demanded will increase.
d. The law of demand states that when price falls demand rises. This is because, all other things being equal, consumers are more likely to buy a product if the price is lower.