Cross Elasticity Of Demand
XI Economics Cross Elasticity Of Demand
Saturday, November 30, 2019
Cross Elasticity Of Demand :
Sometimes the demand of one commodity changes due to change in the price of its substitute termed as ‘’cross elasticity of demand’’.for instance, if the price of coffee increases, the demand for tea will increase because the people begin to use tea in place of coffee.
Formula Of Income Elasticity :
Cross Elasticity of demand % change in the Qty demanded for good Y / % change in the price for good X.
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