Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
An explanation of cross price elasticity of demand, its calculation formula, and the distinction between substitutes and complements. Using examples of Xbox One and PS4, Coke and Pepsi, and pink dresses with accessories, it illustrates how cross price elasticity can help understand the relationship between two goods.
Typology: Study notes
1 / 9
This page cannot be seen from the preview
Don't miss anything!
Demand for a good
Substitutes Complements
Substitutes Cross price Elasticity is qPositive qNegative Complements Cross price Elasticity is qPositive qNegative
Microsoft has an extra HDMI input which allows for a deeper level of integration with your TV. Maybe the Xbox One can even make TV more appealing to young Maybe the Xbox One can even make TV more appealing to young Cross P Elasticity = % change in Qd of TV sets % change in PXBOX ONE Compliments: Cross price elasticity is
Compliments: Cross price elasticity is
Cross P Elasticity = % change in Qd of cofee % change in Pcream& Sugar
Substitutes Complements
Substitutes: WHY NOT? What should I substitute it for? AL’S Bakery uses the finest RUM for their Cakes Ok – I’ll have a bottle of RUM and a Muffin.
Substitutes
