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If product A and B HAS CROSS ELASTICITY OF 8.5 CAN THE THE TWO COMPANIES BE MERGED?
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What is importance of cross elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What is importance of elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What are significance of cross price elasticity?
Cross price elasticity measures the connection between the price of one product and the demand for another product, so it is used to determine whether products are complements, substitutes, or unrelated. For example, if the price of aluminum foil rises and, as a result, the demand for plastic wrap rises, then the cross price elasticity will be a positive and significant number and will support the assertion that these two products are close substitutes. Companies have even used this to defend against allegations of monopoly power, using the cross price elasticity number to demonstrate that they do not have a monopoly since consumers can easily switch to a good substitute.
Importance of cross elasticity of demand?
Cross elasticity of demand is sometimes written as XED. In business the cross elasticity of demand is important because it will help determine whether or not it is a good move to increase or decrease prices or to substitute one product for another for the purpose of revenue.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
What is importance of cross elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What is cross price elasticity?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
What is importance of elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What are significance of cross price elasticity?
Cross price elasticity measures the connection between the price of one product and the demand for another product, so it is used to determine whether products are complements, substitutes, or unrelated. For example, if the price of aluminum foil rises and, as a result, the demand for plastic wrap rises, then the cross price elasticity will be a positive and significant number and will support the assertion that these two products are close substitutes. Companies have even used this to defend against allegations of monopoly power, using the cross price elasticity number to demonstrate that they do not have a monopoly since consumers can easily switch to a good substitute.
Importance of cross elasticity of demand?
Cross elasticity of demand is sometimes written as XED. In business the cross elasticity of demand is important because it will help determine whether or not it is a good move to increase or decrease prices or to substitute one product for another for the purpose of revenue.
What is cross elastic?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Would the concepts of cross elasticity of cross elasticity of demand and income elasticity of demand be of any interest to a pharmaceutical company?
I am at a loss for the answer please help me.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
Uses of cross elasticity of demand?
Cross elasticity in economics, also referred to as cross-price elasticity is used to measure the changes of the demand of a certain commodity to the price changes of another good.
In economics what are the types of elasticity?
price elasticity income elasticity cross elasticity promotional elasticity
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
