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3 Tutorials that teach Cross-Price Elasticity / Complements & Substitutes
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Cross-Price Elasticity / Complements & Substitutes

Cross-Price Elasticity / Complements & Substitutes

Author: Justin Tapp
Description:

This lesson will explain Cross-Price Elasticity / Complements & Substitutes

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Tutorial

Notes on "Cross-Price Elasticity / Complements & Substitutes"

Terms to Know

 

Cross-Price Elasticity 


Change of demand that occurs due to change in price of substitutes or complements.

 

Substitute Goods

As the price one good increases, the demand for an alternative good meeting the same consumer needs, increases.


Complement Goods

A good for which the demand increases as the price of an associated good decreases.

Formulas to Know
Cross-Price Elasticity

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asterisk times T h e space p r i c e s space b e l o n g space t o space o n e space g o o d comma space t h e space q u a n t i t i e s space b e l o n g space t o space t h e space o t h e r space g o o d