Good A's Demand
Good B's Price
计算结果将显示在这里
Results
Cross-Price Elasticity of Demand
Interpretation
How to Use
How to Use
- Enter the initial and final quantity demanded for Good A.
- Enter the initial and final price for Good B.
- Click the 'Calculate Elasticity' button.
- View the result and interpretation (Substitutes, Complements, or Unrelated).
Tips
- Cross-Price Elasticity measures the responsiveness of demand for one good to a change in the price of another.
- Positive values indicate substitutes; negative values indicate complements.
- All calculations are performed locally in your browser.
Calculation Principles & Formulas
Cross-Price Elasticity of Demand (XED) measures the responsiveness of the quantity demanded for one good to a change in the price of another good.
【Formula】
XED = (% Change in Quantity Demanded of Good A) ÷ (% Change in Price of Good B)
Detailed Calculation:
XED = ((Q2_A - Q1_A) / Q1_A) ÷ ((P2_B - P1_B) / P1_B)
Where:
Q1_A, Q2_A = Initial and Final Quantity Demanded of Good A
P1_B, P2_B = Initial and Final Price of Good B
Interpretation: Positive (>0): Substitutes (e.g., Coffee and Tea). Negative (<0): Complements (e.g., Cars and Fuel). Zero (=0): Unrelated Goods.
