Elasticity of Demand and Supply - Cross-Elasticity of Demand
4 important questions on Elasticity of Demand and Supply - Cross-Elasticity of Demand
What does cross-elasticity measure?
E = percentage change in quantity demanded of X
percentage change in price of product Y
Both calculated by using the average price of before and after.
What does it mean if the cross-elasticity is positive?
What does it mean if the cross-elasticity is negative?
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What does it mean if the cross-elasticity is zero, or near-zero?
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