The cross-price elasticity of demand is a measure of the responsiveness of demand for goods when the price of related goods changes. In the analysis, we assume other factors do not change.We mean, related products refer to substitute or
Cross Price Elasticity of Demand
Complementary Goods: Meaning, Elasticity
Complementary goods refer to two or more items that are usually consumed simultaneously. Examples are cars and gasoline. We need gasoline as fuel to drive the vehicle.Complementary products may be part of other items such as a motorcycle and tire
Substitute Goods: Meaning, Elasticity, Examples
Substitute goods refer to two or more goods that meet similar needs, so they become alternatives to each other. For example, Coca-Cola is a close substitute for Pepsi. Because it is an alternative, consumers switch to their substitutes when