Cross Elasticity of Demand (XED)
What Cross Elasticity of Demand (XED) means in Economics A-Level, as defined for AQA.
Definitions of Cross Elasticity of Demand (XED)
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Reference: AQA
Measures the responsiveness of demand for one good to a price change in another; a positive value indicates substitutes and a negative value reveals complements.
Calculated by dividing the percentage change in the quantity demanded of good A by the percentage change in the price of good B.
Topics that use Cross Elasticity of Demand (XED)
- Price, income and cross elasticities of demand (AQA A-Level)
Related terms
- Income Elasticity of Demand (YED)
- Price Elasticity of Demand (PED)
- Revenue maximisation
- Business decision-making
- Complementary goods
- Consumer expenditure
- Cross elasticity of demand
- Inferior good
Using Cross Elasticity of Demand (XED) in the exam
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