What is Cross Price Elasticity of Demand?

• What is Cross Price Elasticity of Demand?:

  • Cross-elasticity of demand measures how the demand for one good responds to changes in the price of another good
• If XED = +ve then goods are substitutes
• If XED = -ve then goods are complementary
• % change in quantity demanded for good A ​/% change in price for good B​ = XED