Question

what is cross- elasticity of demand ?​

Answer 1

Answer:

the cross elasticity of demand or cross-price elasticity of demand measures the percentage change of the quantity demanded for a good to the percentage change in the price of another good, ceteris paribus.

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Answer 2

Answer:

For example, if the price of coffee increases, the quantity demanded for tea (a substitute beverage) increases as consumers switch to a less expensive yet substitutable alternative. ... Items that are strong substitutes have a higher cross-elasticity of demand.

Explanation:

Definition: The measure of responsiveness of the demand for a good towards the change in the price of a related good is called cross price elasticity of demand. It is always measured in percentage terms. Related goods are of two kinds, i.e. substitutes and complementary goods