Cross Elasticity of Demand

The Dude (Specialist- Finance) (303 Points)

08 March 2009

Can some one please tell me the formula for cross elasticity of Demand?

Is it as follows?

Change in qty of substitute/Change in price of good y x Original price of good y/Original qty of substitute

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3 Replies

Kamalkishore (student) (64 Points)
Replied 08 March 2009

Do not multiply with anything. It ends with the first part.

The Dude (Specialist- Finance) (303 Points)
Replied 08 March 2009

Change in qty of substitute/Change in price of good y

Is this the formula???????????

Kamalkishore (student) (64 Points)
Replied 10 March 2009

YEs . percentage change in qty / percentage change in price.

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