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Cross Price Elasticity: General Question

The aim of these question is to calculate and interpret the cross price elasticity of demand.

If the CPED is positive, what type of relationship is there between A & B ? (select one answer)

(a) * complements
(b) * substitutes



What type of relationship is there between the two goods when; Try This

  • Original price of good X = 80
  • Original quantity of good Y = 50
  • Final price of good X = 40
  • Final quantity of good Y = 40
  • Original price of good Y = 5

(Type your answer to the previous question in the box below, then click on explain)


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