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the greater the substitutability between northwest timber and southeast timber, the is the cross elasticity of demand between timber from the two regions and the is the price elasticity of demand for northwest timber. 1) larger; smaller 2) smaller; larger 3) smaller; smaller 4) larger; larger

Respuesta :

The cross-elasticity of demand for timber from the two regions and the elasticity of demand for Northwest timber both increase with the degree of substitutability between Northwest and Southeast timber.

What does demand cross-elasticity mean?

In economics, the relationship between the percentage change in the quantity of a thing sought after and the percentage change in the price of another good, ceteris paribus, is quantified by the cross elasticity of demand, also known as the cross-price elasticity of demand.

Cross price elasticity of demand is the percentage change in a given product's quantity sought as a result of a percentage change in the price of a "related" product.

The cross elasticity of demand aids in determining the impact of these other items' pricing. It evaluates the relationship between the two when the price of one of the commodities varies. This is done by observing how demand for a product changes in reaction to a shift in the price of another product.

To know more about cross elasticity, refer:

https://brainly.com/question/14469117

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