How do you solve for cross elasticity?

1 answer

Answer

1006967

2026-07-17 23:50

+ Follow

To solve for cross elasticity of demand, you use the formula:

[ E_{xy} = \frac{%\ \text{Change in Quantity Demanded of Good X}}{%\ \text{Change in Price of Good Y}} ]

First, calculate the percentage changes in quantity demanded for good X and the price of good Y. Then, divide the percentage change in quantity demanded of good X by the percentage change in price of good Y. A positive value indicates that the goods are substitutes, while a negative value suggests they are complements.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.