Fundamentals of Economics, Globe Business
Elasticity of demand refers to the sensitivity of the demand for a product to a change in price. It is measured as a ratio of the change of the quantity demanded to the change in price (Demand elasticity).
Cross-price elasticity of demand measures the sensitivity of the quantity demanded of one good to the change in price change for another good. Negative cross-price elasticity indicates that the two goods are complements, therefore they are usually consumed together and a decrease/increase in the price for one will increase/decrease the quantity demanded of the other. Positive cross-price elasticity suggests that ...