Cross Price Elasticity Calculator
Parameter |
Description |
Example Value |
Initial Quantity of Good A |
The initial quantity demanded of Good A. |
100 units |
New Quantity of Good A |
The new quantity demanded of Good A after a change in the price of Good B. |
90 units |
Initial Price of Good B |
The initial price of Good B. |
$10 |
New Price of Good B |
The new price of Good B after the price change. |
$12 |
Cross Price Elasticity |
The percentage change in the quantity demanded of Good A divided by the percentage change in the price of Good B \(\frac{(\text{New Quantity of Good A} – \text{Initial Quantity of Good A}) / \text{Initial Quantity of Good A}}{(\text{New Price of Good B} – \text{Initial Price of Good B}) / \text{Initial Price of Good B}}\). |
-0.5 |