Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T16:49:53+05:30 2021-09-30T16:49:53+05:30In: Economics What is Cross Elasticity of demand? What is Cross Elasticity of demand? key economy terms Share Facebook 1 Answer Recent Rahul 0 Questions 518 Answers 176 Best Answers 2k Points View Profile Best Answer Rahul BRIGHT 2021-09-30T16:54:03+05:30Added an answer on September 30, 2021 at 4:54 pm Cross Elasticity of demand 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. With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good. Related goods are of two kinds, i.e. substitutes and complementary goods. In case the two goods are not related, the Coefficient of Cross Elasticity is zero. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Spot Price? What is Sovereign Risk?