[This is part of the series: The Complete Guide To Economics 101.]
What is the cross-price elasticity of demand?
The Cross-Price Elasticity of Demand is a measure of how sensitive quantity demanded of one good, or service, is to changes in the price of another good, or service.
If the price of hotdogs decrease by 10%, what would be the impact on quantity demanded for hotdog buns?
Or, if the price of apples increased by 10%, what would be the impact on quantity demanded for oranges?
(Cross-Price Elasticity of Demand) = (% change in quantity demanded of good X) / (% change in price of good Y)