Cross Price Elasticity Calculator

Cross Price Elasticity Calculator

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

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