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explain xed value

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uuid: d6b6e3dd-1bba-466a-aad8-9e39c68280ab uuid: d6b6e3dd-1bba-466a-aad8-9e39c68280ab
--- ---
# Cross Elastic Demand (XED)
The equation given in the lecture slides is: The equation given in the lecture slides is:
$$\text{XED} = \frac{\frac{\Delta q_A}{q_A}}{\frac{\Delta p_B}{p_B}}$$ $$\text{XED} = \frac{\frac{\Delta q_A}{q_A}}{\frac{\Delta p_B}{p_B}}$$
@ -17,6 +19,9 @@ $$\text{XED}
= \frac{\text{percentage change in quantity of A}}{\text{percentage change in price of B}} = \frac{\text{percentage change in quantity of A}}{\text{percentage change in price of B}}
$$ $$
If XED is positive, the two goods A and B are substitutes for each other.
If XED is negative, the two goods are complimentary.
## Example ## Example
![A question from the book (page 91)](./images/xed_question.png) ![A question from the book (page 91)](./images/xed_question.png)