The cross-price elasticity of demand measures the absolute change in the quantity demanded of one good divided by the absolute change in the price of another good. percentage change in the price of one good divided by the percentage change in the quantity demanded of another good. percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location.

percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Explanation:

Demand cross-elasticity is the measure of the relative change in the quantity demanded for a good or service (A) as a function of a certain relative change in the price of another good or service (B) considered to be a substitute for or complementary to the first (A). For example, how much would increase the amount of margarine demanded if there was an increase in the price of butter. The formula for calculating the cross elasticity of demand consists in dividing the relative change in the quantity demanded of a good divided by the relative change in the price of the substitute good.

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explanation:

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