What is Cross-Elasticity of Demand?
Cross elasticity of demand refers to the degree of responsiveness of demand for a commodity to changes in the price of another commodity.
That is, it measures how changes in the price of a commodity will affect the demand of another commodity. Cross elasticity of demand applies mainly to goods that have close substitutes as well as complementary goods.
Let us connect on social media forever;
Somtochukwu
Follower of Balancism 💚. CEO at Bufiredd Economic Consults Ltd
Latest posts by Somtochukwu (see all)
- 10 Things Gen Z Will Teach You About Life (+ Benefits of Being Gen Z) - December 27, 2024
- 25 Ways to Live a Better Life as a Nigerian in 2025 - December 26, 2024
- 11 Ways to Build Sustainable Wealth in Nigeria and the USA - December 24, 2024