Cross elasticity of demand can also be understood as the proportionate change in quantity demanded of commodity ‘X’ … Cross elasticity of demand is the ratio of percentage change in quantity demanded of a product to percentage change in price of a related product.. One of the determinants of demand for a good is the price of its related goods. It is always measured in percentage terms. In a previous lesson we learned about price elasticity of demand, but there are many other types of elasticity that measure how agents respond to variables other than the change in a good's price. The law of demand explains that demand will change due to a change in the price of the commodity. In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good, ceteris paribus.It is measured as the percentage change in quantity demanded for the first good that occurs in response to a percentage change in price of the second good. Cross elasticity of demandCross elasticity of demand (XED) is the responsiveness of demand for one product to a change in the price of another product. Cross elasticity of demand is defined as the ratio of proportionate change in the quantity of the goods demanded when there is a change in the price of goods demanded in related goods. But it does not explain the rate at which demand changes to a change in price. It is also termed as a measurement of the relative change of the quantity in demand because of fluctuation or change in the price of the related product. Cross elasticity of demand is a valuable tool for small business owners entering a market for the first time or hoping to expand their current product or service line. Cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demand of one good when a change in price takes place in …
This is measured using the percentage change. Cross elasticity of demand is a measure of degree of change in demand of a commodity due to change in price of another commodity. Define cross elasticity of demand (XED). State the relationship between two substitute goods. It is the measure of responsiveness of demand for one good to a change in the price of another good.

Cross-price Elasticity of Demand is used to classify goods. This is measured using the percentage change. Cross Price Elasticity of Demand (XED) measures the responsiveness of demand for one good to the change in the price of another good.
For example, if two goods A and B are consumed together i.e.