cross elasticity of demand
cross-price elasticy of demand

Independent goods are goods that have a zero cross elasticity of demand.

In the case of perfect substitutes, the cross elasticity of demand is equal to positive infinity.

A substitute good, in contrast to a complementary good, is a good with a positive cross elasticity of demand.

Cross elasticity of demand for firms, sometimes referred to as conjectural variation, is a measure of the interdependence between firms.

In reality, sufficiently large sales or purchases of individual assets can shift market prices for that asset and others (via cross elasticity of demand.)

Cross elasticity of demand, an economics term which measures the responsiveness of the demand of a good to a change in the price of another good.

In these cases the cross elasticity of demand will be negative, as shown by the decrease in demand for cars when the price for fuel will rise.

Those which offer petrol alone have relatively higher cross elasticities of demand between them than those which have additional facilities (carwash, repairs, retailing, and so on).

For an example with a complement good, if, in response to a 10% increase in the price of fuel, the quantity of new cars demanded decreased by 20%, the cross elasticity of demand would be -2.0.

The degree to which a good is a substitute or a complement depends on its relationship to other goods, rather than an intrinsic characteristic, and can be measured as cross elasticity of demand by employing statistical techniques such as covariance and correlation.