International Baccalaureate Economics (Chapter 3: Elasticities) Flashcards on 3.2: Cross Price Elasticity of Demand, created by Jasmine Wells on 10/01/2016.
|
Created by Jasmine Wells
over 8 years ago
|
|
Close
|
|
Created by Jasmine Wells
over 8 years ago
|
|
What is Cross price elasticity of demand (XED?)
What is the formula for XED?
What is the meaning of a positive XED?
Positive XED equals to...
What happens when the cross price of elasticity of demand between 2 goods is positive and it is he large?
What is the meaning of a negative XED?
Negative XED equals to...
What happens when the XED of 2 goods is negative and absolute value is large?
What occurs when the XED of 2 goods is equivalent to 0?
Why must a business take into careful consideration when producing substitutes?
Why must businesses be aware of substitutes being produced by rival businesses?
Why might a firm merge with another firm producing substitute of a good?
Why is knowledge of XED useful for complimentary products?
