The cross elasticity of demand calculates the responsiveness of the quantity demanded of one product to alters in the price of another product.  For example, the quantity demanded of Coca-Cola to alters in the price of Pepsi.  Cross elasticity of demand gives an indication of how close a substitute or complement one commodity is for another.  This concept has substantial practical value in formulating marketing strategies for most products.

Posted Date: 4/19/2013 5:32:07 AM | Location : United States

Ask an Expert

Related Discussions:- Substantial practical value, Assignment Help, Ask Question on Substantial practical value, Get Answer, Expert's Help, Substantial practical value Discussions

Write discussion on Substantial practical value
Your posts are moderated

Write your message here..

Related Questions

Advertising budget, analyse the method by which a firm can allocate the giv... analyse the method by which a firm can allocate the given advertising budget between different media advertisement?

Welfare economics, Prove the theory of second best with the help of a diagr... Prove the theory of second best with the help of a diagram

Illeteracy on economic growth of developing country, Explanation Explanation

Political economy, Consider the model of corruption explored by Shleifer an... Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq

Microeconomics, I need help on MCQs on international trade and imperfect co... I need help on MCQs on international trade and imperfect competetion

Critique on earmarking, Critique on Earmarking Studying the working of... Critique on Earmarking Studying the working of earmarking in many OECD (organisation of economic  cooperation and development) countries, Potter and Diamond (1999) pointed out

Evalution - credit and recoveries, "Micron" is a company,providing micro fi... "Micron" is a company,providing micro financing facility for various business entities.So far Micron has been in operation for seven years facilitating new business ventures and ex

Economics for everyone, what is supply and demand what is supply and demand

FISCAL POLICY, HOW DO YOU ADJUST FISCAL POLICY FOR INTERNAL BALANCE HOW DO YOU ADJUST FISCAL POLICY FOR INTERNAL BALANCE

Long run eq, The raspberry growing industry is a perfectly competitive indu... The raspberry growing industry is a perfectly competitive industry. The firms in the industry have a U-shaped LAC, minimum average cost is $8 and the minimum efficient scale is 4 u