Cross price elasticity of demand (XED) measures how responsive the quantity demanded of one good is to a change in the price of another good.
It is measured by the equation:
% change in the quantity demanded of good a / % change in price of good b
A positive figure for XED indicates that the goods are substitutes, whereas a negative value indicates that the goods are complementary
lydiajane74 answered the question on July 4, 2018 at 09:28
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