Cross Elasticity of Demand
Completion requirements
The next elasticity of demand we will discuss is the cross-price elasticity of demand. There is no need to be intimidated by the complex sound of its long name!
The cross-price elasticity of demand simply measures the percentage
change in the quantity demanded of one good or service due to the
percentage change in the price of a related good or service. We are sure
Elon Musk would like to know how much the quantity demanded of the
Tesla Cybertruck would change in percentage terms in response to a given
percentage change in electricity prices.
Source: Khan Academy, https://www.youtube.com/watch?v=Ngv0Be9NxAw
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Last modified: Wednesday, 31 July 2024, 9:25 AM