Cross elasticity of demand ;

An economic concept known as the cross elasticity of demand measures how

responsive the quantity demanded of one good is when the price of another

good changes. This measurement, which is also known as cross-price elasticity

of demand, is calculated by dividing the percentage change in the quantity

demanded for one good by the percentage change in the price of the other good.

The cross versatility of interest is a financial idea that actions the responsiveness

in

the amount requested of one great when the cost for another great changes.

Because the demand for one good rises when the price of the substitute good

rises, cross elasticity of demand for substitute goods is always positive.

On the other hand, complementary goods' cross elasticity of demand is negative.

As A is used in conjunction with B, an increase in the price of B results in a

decrease in the quantity demanded for A. On the other hand, if the price of
product B decreases, the demand curve for product A shifts to the right,

indicating an increase in A's demand, resulting in a negative cross elasticity of

demand value. If A and B are substitutes, a rise in the price of B will increase

demand for A in the market because customers will readily substitute A for B