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