# Define Or Explain the Following Concept: Cross Elasticity of Demand - Economics

Short Note

Define or explain the following concept:

Cross Elasticity of Demand

#### Solution

Cross elasticity of demand is the measure of the responsiveness of demand for a good to a change in the price of a related good.

"Ec" = ("Proportionate change in quantity demanded of good X")/("Proportionate change in price of good Y")

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#### APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 4 Elasticity of Demand
Exercise | Q 1.1 | Page 31